In plain English
What Execution price means
A displayed bid or ask is an indication of what may be available at that moment; the execution price is the price recorded for the completed trade. A market order may receive one execution price or several if it is filled in pieces. For a limit order, any fill should meet the limit price or be better, subject to the order terms and the platform’s rules.
Why it matters
Profit and loss are calculated from the execution price, not from a chart price or a quote seen before clicking buy or sell. Comparing the execution price with the expected price can reveal slippage, while comparing fills across venues can help assess execution quality. A favorable displayed spread does not by itself ensure a favorable fill.
Example
EUR/USD is quoted at 1.08500/1.08502. A trader submits a market order to buy 100,000 euros, but the available offer changes before the order reaches executable liquidity. The order is filled at 1.08505. In this simplified example, 1.08505—not 1.08502—is the execution price, and the difference is 0.3 pip of adverse slippage.
Quick answers
Common questions
Can an order have more than one execution price?+
Yes. If there is insufficient liquidity at one price, an order can be filled in several portions at different prices. Platforms may show each fill separately or report an average execution price for the completed order.
Is execution price the same as the price on a chart?+
Not necessarily. Charts may show bid, ask, midpoint, or last-traded prices depending on the product and platform. The trade confirmation or account record identifies the actual execution price.
Sources