Deviation is a manual setting used in trading platforms to avoid requotes. Since requotes only happen in instant execution, this setting can only be used while placing market orders on instruments using instant execution.
Let us look into this feature in detail:
- On MT4/MT5 desktop terminals
- On MT4/MT5 mobile terminals
- On MetaTrader WebTerminal
Where can a trader set up deviation?
Setting maximum deviation can be done in the trading window while trading on both mobile and desktop versions of MT4 and MT5.
It is important to note that requotes will still occur if the price change is more than the set up range of deviation.
Let us look at an example of to understand this:
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.
a. 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, we need to consider the Bid price which in this case has changed from 1.39903 to 1.39915. The change (1.2 pips) is less than the set up range, thus the order will be executed at the new price of 1.39915 without any requote display. This can also be called controlled slippage.
b. When he clicks Sell in the trading platform, the prices are 1.39903/1.39916 and they jump to 1.39935/1.39953. Since this is a Sell order, we need to consider the Bid price which in this case has changed from 1.39903 to 1.39935. The change (3.2 pips) is more than the set up range, thus the platform will display a requote with the new set of prices.
Note that requotes may occur when closing orders too so the set deviation will work both while opening and closing.
How to set it up
You can follow the steps below to set this feature up:
On MT4/MT5 desktop terminals:
- 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.
On MT4/MT5 mobile terminals:
- Press and hold any instrument in the Quotes tab and tap Trade
a. If using an Android device, tap Quotes > New order.
- Set up your desired 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.
Setting maximum deviation is not available for mobile and web versions of the Exness Terminal.