Best case scenario
What Is At Best?
Best case scenario, is a guidance joined to an order to fill a transaction at the best price accessible, and as fast as could really be expected.
Best case scenario, orders are frequently market orders yet may likewise involve a bit of discretion with respect to the broker to best execute the order.
Figuring out At Best
Best case scenario, transactions can either be applied to equities or currencies where the trader would endeavor to individually get the best conceivable price or rate. Best case scenario, orders are generally executed quicker than a [conditional order](/conditionalorder, for example, a limit order. The ultimate price a trader receives for a security is subject to the current market price, so the trader might end up paying something else (for a buy order) or getting less (for a sell order) than expected.
Best case scenario, orders guarantee execution when there's a willing counterparty for the whole order, yet it doesn't guarantee the price. Since you can't set a price with, best case scenario, guidelines, the genuine price at which you might buy or sell might be higher or lower than expected. In this manner, investors ought to be careful while marking an order, best case scenario, except if they require immediate execution no matter what the price they receive.
When Is At Best...Best?
There are essentially two examples where an, best case scenario, order could prove to be useful, and which couldn't be further apart in motivation. In one case, best case scenario, orders are valuable for transactions requiring immediate execution while, on another hand, they can be helpful for investors who require no quickness at all.
In the primary occurrence, speed is of the substance and an, best case scenario, order seems OK for a strategy that requires immediate execution due to time-delicate data. For instance, when a trader understands a productive trade thought before any other person does, thus needs to seize different orders going the same way.
In the subsequent model, and with a remarkable far edge of the requirement for speed, certain long-term investors may essentially mark an order, best case scenario, since they realize they need to take care of a request, yet are uninterested about price or promptness. For instance, a hedge fund may need a certain asset class they're bullish on extremely long term, for example, 20 years out, yet doesn't want to overpay for more costly immediate execution. Here, they may just say "buy it at whatever price" — as far as they might be concerned won't make any difference given a long time horizon and a large expected price appreciation. In this case, the broker might understand the order as "not held", and work it at their circumspection to get the best fill.
- Best case scenario, orders educate a broker to fill a buy or sell order at the most beneficial price currently accessible, and as fast as could be expected.
- Best case scenario, orders are valuable for transactions requiring immediate execution, yet can likewise be helpful for investors who require no promptness at all.
- Best case scenario, orders guarantee execution when there's a willing counterparty for the whole order, however it doesn't guarantee the price.