What is a slippage?

Modified on Thu, 6 Feb at 6:02 PM

Slippage refers to the difference between the expected price of a trade and the actual price at which it is executed. This typically occurs during periods of high market volatility or significant events, such as major Forex news announcements. 

Slippage can be positive (resulting in a better price than requested) or negative (resulting in a worse price than requested), depending on the direction and intensity of price changes at the time of execution. 

The variation in prices occurs due to differences in liquidity providers and trading conditions offered by brokers. Each broker works with unique streams of price quotes, leading to differences in highs, lows, open, and close prices. 

With our market execution model, all orders are sent directly to the market and executed at the current available price. This price may differ from the one requested by the client, and the discrepancy is known as slippage. 

 

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article