Deviation is a manual setting used in trading platforms to avoid requotes. This allows the system to execute your order within the permissible slippage parameter set.
Requotes only happen in instant execution, which means that deviation can only be used when placing market orders on instruments using instant execution.
It is important to note that requotes will still occur if the price change is more than the set range of deviation.
In this article, we look into this feature in detail:
- Where can a trader set up deviation?
- How to set it up?
Where can a trader set up deviation?
Setting deviation can be done in the trading window when trading on both mobile and desktop versions of MT4 and MT5.
Here’s an example to understand how deviation works:
A trader wishes to place a sell order for GBPUSD in a Pro account, which offers instant execution. He sets up a deviation of 3 pips before placing his trade.
One of these two scenarios may happen;
- When he clicks Sell in the trading platform, the prices are 1.39903/1.39916 - and they quickly change to 1.39915/1.39922. Since this is a Sell order, the bid price has changed from 1.39903 to 1.39915, which is a change of 1.2 pips - less than the set deviation range. Thus, the order will be executed at the new price of 1.39915 without any requotes display. This is also called controlled slippage.
- When he clicks Sell in the trading platform, the prices are 1.39903/1.39916. This jumps to 1.39935/1.39953. Since this is a Sell order, we need to consider the change in bid price which in this case has changed from 1.39903 to 1.39935, which is a change of 3.2 pips - more than the set deviation range. Thus, the platform will display a requote with the new set of prices.
Do note that requotes may occur when closing orders too, so the set deviation will work both ways, while opening and closing.
How to set it up
Setting up deviation can be done on desktop, mobile, and web versions of both MT4 and MT5 terminals. Here’s how:
Setting maximum deviation is currently not available for mobile and web versions of the Exness Terminal.
On MT4/MT5 desktop terminals:
- In the Market Watch section, double-click on your preferred instrument to bring up the trade window.
- Under Deviation, enter your desired deviation range in pips.
On MT4/MT5 mobile terminals:
- Select and hold any instrument in the Quotes tab, and tap Trade.
- For Android devices, tap Quotes > New order.
- Next, set up your desired deviation range in pips, under Deviation.
On MetaTrader WebTerminal:
- Double-click on any instrument in Market Watch to bring up the trade window.
- Check the box for Enable maximum deviation from quoted price.
- Enter your desired range of pips in the box below.