When does trade validation occur on the platform?

Trade validation is the process of checking whether an order meets platform and market requirements before it can be executed, including margin, parameters, and instrument conditions. This validation occurs automatically and instantaneously when a trader submits an order, before the order is routed to the market for execution. It serves as the critical gateway between order submission and order execution, ensuring that only properly formed and adequately funded orders enter the trading environment.

The validation process is triggered every time an order is placed, regardless of whether it is a market order intended for immediate execution or a pending order that will be activated at a future price level. For market orders, validation happens in the fraction of a second between the trader clicking the confirmation button and the order being sent to the liquidity pool for matching. For pending orders, an initial validation occurs at submission to confirm that the order parameters are acceptable, and a second validation occurs when the trigger price is reached, ensuring that the account still meets all requirements at the actual point of execution.

During each validation check, the system reviews several key criteria simultaneously. It confirms that the trader's account has sufficient free margin to support the requested position, that the order volume falls within the permitted range for the selected instrument, that the instrument is currently available for trading and within active market hours, and that all order parameters, including stop-loss and take-profit levels, are set within acceptable distances from the current price. If any of these checks fail, the order is rejected and the trader receives a notification explaining the specific reason, allowing them to make the necessary adjustments and resubmit. This real-time validation process runs continuously and reliably in the background, maintaining the integrity of the trading environment without requiring user intervention.