From time to time there are situations when the order is executed at a different price than the trader sent the order. The reaction of any trader in such a situation is to blame the broker, who deliberately interferes with opening at the level at which the trader sent the order. However, is it the broker's fault?

In the article, we will look at what slippage in Forex really is and how to minimize risks.

What is slippage in forex

Forex slippage(slippage) is the difference between the price at which the trader sent an order to the broker to open an order and the price at which the broker executed the order.

Slippage in trading in simple words is the difference in price between the quotation of the application for opening an order and the actual price at which the position was opened. A line break on a graph is called gap, but slippage can occur not only at break.

Many traders mistakenly believe that slippage on the chart is a fraudulent manipulation by brokers, with the help of which they gradually “ drained» clients. And indeed, at first glance, this is quite a logical explanation. The company theoretically can use the capabilities of the server part in order to prevent the trader from earning.

Moreover, slippage can be both negative and positive.

In the latter case, the deal will be opened at a better price. Also, slippage should not be confused with requotes. The latter appear when the market does not have the price at which the trader submits an order. This can happen, for example, on low-liquid assets or during periods of increased volatility, when quotes change really quickly.

How and why slippage occurs

In fact, slippage in Forex is not the intrigues of a broker, but a sign that the work is really being done in the market. After all, if transactions are brought to the external market, it is extremely difficult to execute all orders of all clients at the same time.

Most often, some queue of applications is formed. Moreover, with insufficient liquidity, the price can really slip by several points in the direction of the trader's forecast or even against it.

The inability to satisfy the requirements of the client may lead to the fact that the market will split the order to sell it to several buyers at once. The weighted average price will already be in effect there, which may turn out to be worse than the one that was in the terminal at the time the trader sent the order.

It also happens that one of the suppliers is not able to fulfill the application. In this case, the broker will be forced to look for another supplier. During this time, the price may change slightly.

Most often, slippage occurs when important statistics are released. At this time, the liquidity situation on the market changes dramatically. Its major suppliers are leaving the market, as they may suffer losses in the event of a sharp change in the market situation.

The broker, in turn, can expand the spread so as not to be at a loss. As for the trader, he starts having problems with opening an order, requotes and slippages are possible.

Finally, slippage also appears when there are technical problems. Moreover, they can be both on the broker side and on the client side. Including due to the weak speed of the Internet.

Ways to minimize risks

On the one hand, slippage is good, as it shows that the trader is really trading in the market through a broker. On the other hand, if such situations happen very often, this leads to the loss of part of the profit, and sometimes to losses. There are several recommendations that will minimize the risk of slippage.

Quality Internet

Today, the Internet is of sufficient quality, but not everywhere and not always. There are interruptions, the speed may not be high enough, and so on. Accordingly, it is necessary to find a reliable provider.

If you are working through a Wi-Fi router, you may need to abandon it and switch to a wired modem. This scheme is much more reliable. At the same time, it is recommended to disable all other programs that also use the network.

• This may be most relevant for those who are engaged in scalping, and aggressive ones. First of all, you need to disable torrents, Viber, Skype and other programs that have constant access to the network.

Platform Settings

Also, in order to avoid serious slippage, it is necessary to make some adjustments on the platform Metatrader 4. In the window for placing an order, there is a special window that allows you to set the maximum price deviation from the requested one. Here you can display from 1 to 10 points.

The essence of this setting is that, in theory, if the price at which a transaction can be opened differs from the deviation by at least one point, the position will not be opened. But in practice this is not always the case.

Pending orders

In order to reduce the impact of slippage on trading results, some traders use the so-called Limit orders. These include, in particular:

• buy stop
• Sell ​​Stop
• Buy Limit
• Sell ​​Limit

Buy and Sell Stop orders are triggered only when the price reaches them. Accordingly, there are the same risks as when opening positions manually. The broker will process the application, but this does not mean that there will be any special conditions for the order. It will also go on a first-come, first-served basis and slippage is possible here.

As far as limit orders are concerned, they are sent in advance and thus some of the liquidity is already booked for the trader. There is also a risk of slippage, but it is much lower.

Refusal of scalping and work on higher timeframes

This is another way to minimize risks. Naturally, if the trader does not care what strategy to follow. If he is a fan of scalping, he needs to consider other possibilities.

For those who switch to daily charts and open 1-2 positions per week, and sometimes less, even a difference of 5 points does not seem to be noticeable. If the work is carried out on a five-minute chart, the same 5 points can be significant.

Do not trade during the news

Large liquidity providers may leave the market during the news release period. Accordingly, slippage on the chart is possible, and quite serious ones at that. It is also worth giving up trading at such moments because spreads usually increase sharply for all brokers. They can reach up to 50 points.

Changing trading account or broker

Sometimes such a step gives a positive result. By changing the trading account, you can get more favorable conditions. However, do not assume that this will solve the problem of slippage. The fact is that they happen to all companies without exception and this is quite a normal phenomenon.

Brokers who wouldn't have slippage just doesn't exist.

Sometimes finding such a broker is akin to finding the Grail. You can open accounts in all companies without exception and the result will be the same.

But if Forex slippage is common, you should really consider a second broker. And for starters, it is advisable to test and compare which of the companies has this indicator less and less often. Sometimes it also happens that for different brokers with different liquidity providers, slippage can occur more or less frequently.

Best Forex Brokers

FinmaxFX Alpari fxpro

Selection of certain news

Not all news leads to serious market movements. Accordingly, slippage may occur on some, and the movement itself will be insignificant. Other news leads to strong moves where slippage may not be as significant.

The truth here is also relative. Slippage, as well as the spread, can increase in different ways when one or another statistics is released.

Instead of output

Slippage in Forex trading is common, and “common” does not make it pleasant.

You can only fight it if it depends on you. In other cases, it is best to insure with pending orders and trading platform settings.

When chart slippage occurs for market reasons, traders are powerless. But if such situations become more frequent, then you should think about changing your trading account or liquidity provider.

If you find an error, please highlight a piece of text and click Ctrl+Enter.

Slippage is inevitable for every trader, whether they trade stocks, futures, or cryptocurrencies. Slippage is a situation when, when entering or exiting a trade, you receive a price that is not what you expected.

If the stock's bid price is $49.36 and the ask price is $49.37, and the trader submits a market order to buy 500 shares, he expects to get executed at $49.37. For those fractions of a second that the application needs to reach the exchange, some event may occur on the market or just a delay in quotes. As a result, the order may be filled at a different price, such as $49.40. In this case, the difference between the expected and actual purchase price is $0.03, which is slippage.

Slippage and order types

Slippage occurs when a trader uses market orders. This is one of the types of orders used for. Slippage can be obtained both on entry and exit.

To eliminate or reduce it, you can send to the exchange not market, but limit orders.executed only at the specified or better price. Unlike the market one, it cannot be executed at the worst price. Therefore, the use of limit orders allows you to avoid slippage. In some cases, this is a great solution. But not always.

Position entry

To enter a position, many traders use limit and stop-limit orders (not to be confused with stop orders!). This allows you to simply not enter a trade if it is not possible to get the desired price. Sometimes the use of a limit order causes a profitable opportunity to be lost. In return, the trader insures himself against slippage when opening a trade.

A market order guarantees a trade, but there is a possibility that slippage will occur and the trader will receive a worse price than expected.

Ideally, should provide for entry into positions using limit or stop-limit orders, so as not to incur unnecessary losses due to slippage. Some strategies involve working in a very volatile market and therefore require the use of market orders. In this case, it must be taken into account that slippage may occur.

Exit a position

Already in a trade, a trader has fewer opportunities control the situation than before entering. This means that, under certain circumstances, he may be forced to use a market order to exit the position quickly. In more favorable conditions, you can also use limit orders.

When the price goes in the right direction, you need to set a limit order at the target level. Suppose a trader buys a stock at $49.40 and places a limit order to sell at $49.80. In this case, the shares will be sold only if there are those willing to pay for them at $49.80. You don't have to worry about slippage. The seller will receive a price of $49.80 (or higher).

When placing an order to limit losses in case the price goes in an unfavorable direction, it is necessary to use a market stop order. This will provide a guaranteed exit from a losing position, although the execution price may differ from the desired one. A stop-limit order is executed at the specified price, but it is not suitable for limiting losses, because if the market goes against you and the desired price is not filled, the position will remain open and the loss will increase. That is why in this case it is better to use a market limit order - even with some slippage, it will provide a limit on losses.

How to avoid slippage

The biggest slippage usually occurs during the release of important news. Therefore, day traders should avoid making trades at times when news events are scheduled, such asor publication of a company report. At first glance, the news-driven big moves look attractive for trading. But keep in mind that there may be difficulties with entering and exiting at the desired prices. If a trader already has an open position at the time of the news release, he may experience slippage when a stop order is triggered, that is, the risk in the transaction increases.

The day trader needs to keep an eye on economic calendar and try not to trade a few minutes before the release of important news and a few minutes after it. It is better to open positions not before, but after the news event.

If the news differs from the specialists' expectations (the so-called surprise), then the slippage may be quite large. And in many cases it is impossible to avoid it. If a trader does not trade during the release of important news, then in most cases slippage does not create for him big problems. Therefore, it is always recommended. If disaster strikes and you get slippage on your stop order, don't fret, just look at what could happen if you didn't have a stop order at all. The threat of slippage is no reason to refuse to take any possible measures to manage the risks in the transaction.

Keep in mind that slippage usually occurs in instruments that are traded on small volumes. You need to try to trade stocks and futures with large volumes. This will reduce the chance of slippage. In addition, you need to work with stocks and futures in.

Conclusion

It is impossible to completely avoid the risks of slippage. Therefore, this phenomenon should be treated in the same way as a spread or commission per trade. Sometimes the price is worth paying, but not always. Where possible, limit orders should be used to enter positions. Also, limit orders should be used in most cases to exit profitable trades. If you need to enter or exit instantly, you can send a market order. Market stop orders should be used to limit losses. Market orders are subject to slippage, but in cases where you need to enter or exit quickly, this small amount pays off.

Is it possible to reduce slippage in Forex?

Forex slippage - what is it?

The Forex market is characterized by the fact that there are no trifles in it. Any seemingly insignificant detail over a long distance can turn around. Pay attention to any price chart - quotes change every second. It is on these minor fluctuations, or, as they are also called, market noise, that many trading strategies are built. Scalping, pipsing strategies (see) - the purpose of the transaction here can be only a few points or tens of points. But there are many transactions during the trading session. And, imagine that during the execution of each order there is a delay, during which the price moves only one pip towards the conclusion of the transaction. That is, one point is lost. And if there are a hundred such transactions per trading session? That's a hundred lost points daily. In this article, we'll talk about the following:

1. Volatility;
2. Trading account type;
3. Trade order execution type.

What is slippage?

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Thus, we come to the concept of slippage - a phenomenon that can have a significant impact on the profitability of a trader's trade, but which the trader himself cannot influence. Slippage is the difference between the actual price of the transaction and the price that exists at the time the trade order is sent. Objectively and in simple terms, slippage can be explained by the fact that when opening a position to buy or sell an instrument, there must be a buyer or seller who will buy or sell this instrument. Due to the absence of such a buyer or seller, the transaction is concluded at the nearest price.

The amount of slippage depends on many factors and can reach a size that completely eliminates the trader's efforts to make a profit. This question is especially relevant, as mentioned above, for scalping or pipsing traders. After all, it is necessary to take into account not only slippage, but also such fixed costs as and, as well as various types of broker commissions. And with scalpers trading goals of several points, the amount of these costs in most cases can completely “eat up” the profit from a particular transaction.

Forex slippage is the higher, the higher the market volatility. Additionally, slippage is also affected by such factors as the speed of processing a trading request by a broker, the option for processing an application, and the type of a trader's account. Slippage can occur in several ways:

• when opening a position at a market price;
• when exiting a transaction on the market;
• when entering a position using a placed pending order;
• when closing a deal with a pending order.

As you can see, slippage is most significant in short-term trading. With a medium-term and long-term trading strategy, slippage is not so critical. To reduce the influence of slippage, consider the factors influencing it in more detail.

Factors affecting slippage

• Volatility;

Volatility is a financial indicator that determines the rate of change in the price of an instrument. Volatility can be influenced by factors such as:

1. general economic condition, changing depending on the impact of fundamental factors. For example, the economic condition of an agricultural state is significantly influenced by weather conditions, the yield of cultivated crops;
2. activity of market participants, depending on the current trading session and trading instrument. Thus, the greatest volatility in the movement of currencies is observed during the London session. The American session can dramatically change the instrument's volatility during the release of important news. During the Pacific session, currency pairs with the Japanese yen are the most volatile;
3. publication of macroeconomic statistics - the market reacts especially violently to the discrepancy between forecasts for indicators and the actual indicator.

• Trading account type;

In the Forex market, in addition to the demo and real account categories, which we will not dwell on, there are the following types accounts:

1. standard account (Standard or Classic). This is the most popular type of account, especially among. It is characterized by availability and undemanding to the size of the deposit, large, medium speed of execution of transactions and a wide range of traded instruments;
2. ECN account is a tool for interbank trading. It is characterized by high speed and accuracy of execution of trading orders, relatively low leverage, smaller sizes spreads;
3. HDD or STP accounts. The main difference of this interbank account type is the way the trader's order is processed. It is characterized by high speed and accuracy in the execution of trade orders, the absence of intermediaries and conflicts of interest, and minimal commissions.

• Type of trade order execution;

There are two types of trade order execution:

1. Instant Execution - positions are opened at the price of the trader's order. With this type of execution, the phenomenon of slippage is completely absent, but, if it is impossible to conclude a transaction at the required price, the transaction is canceled and an offer appears to conclude a transaction with other conditions. This phenomenon is called "requote" - refusal to execute the trader's order at the appointed price.
2. Market Execution - the position will be opened in any case, but possibly at a price different from the price set by the trader's order.

How to reduce slippage losses

Having decided on the factors that affect slippage, you can move on to ways to reduce losses from this phenomenon. The development of methods should be based on the trading style of the trader. If a trader practices medium or long term trading, slippage is not as critical due to the small number of trades with high profit targets. Scalpers should do the following.

First of all, you need to study the trading conditions provided by various brokers. You should choose a broker that advertises "immediate" execution of orders and has the "slip limit" function in the terminal. in a good way the choice may be to visit forums specializing in short-term trading - feedback on the work of brokers will allow you to choose an intermediary with minimal slippage. Personally, I prefer to work with time-tested brokers such as Alpari, FxOpen, etc.

Determine the trading time with increased market volatility and try not to open positions at this time. This advice is not suitable for trading strategies that use highly volatile trading instruments.

The release of macroeconomic news causes increased market interest in currency pair where the news is released. Traders who do not practice trading on the news are advised to refrain from trading in the periods before the release of the news and for some time after the release. The release of macroeconomic news can not only allow you to earn, but also, as a result of slippage, receive a significant loss.

In terms of choosing a trading account, short-term traders should pay attention to the conditions provided by trading accounts such as ECN, HDD or STP. Most of the brokers I work with have similar types of accounts ( , ). These types of accounts can provide the required speed of execution, eliminating the occurrence of slippage. Scalpers will appreciate the work on the STP account. Transactions are concluded with the highest possible speed and accuracy. The absence of intermediaries not only increases the speed of processing a trade request, but also increases the security of transactions - the possibility of deliberately slowing down the execution of an order by unscrupulous intermediary companies is excluded. An STP account is an excellent tool for an experienced trader, designed to work with fairly large amounts.

The preferred type of trade order execution for any kind of trading is Instant Execution. But choosing this type, especially in short-term trading in a volatile market, can cause massive requotes, which will also have a significant impact on the trader's profitability. That is why the choice of the type of execution should take into account other trading conditions of the strategy used by the trader.

Another way to reduce losses from slippage on the stock exchange and forex is to use pending orders rather than market ones. However, you should pay attention to the fact that, of course, only "limit" type orders are executed without slippage. At the same time, stop orders can be filled with slippage. This is because a limit order has a predetermined price, giving the broker the necessary time limit to execute it.

Today I decided to talk about price slippage in Forex and how to deal with it.

Suppose the market is in an uptrend, a trader makes a deal to purchase a currency at a price of 1.1315, and it is created at a price of 1.1318. Every trader at least once in his trading experience found himself in a similar situation. What is it and why is it happening? This phenomenon is called slippage or slippage.

What is Forex slippage

Slippage is the difference between the prices at which the trader planned to create a position and the price at which the transaction was actually created.

In our example, the slippage is 3 pips. What explains the occurrence of slippage? The change in price during the opening of an order is observed because at the time of the conclusion of the transaction, there must be a buyer or seller in the market, depending on the type of order. In a situation where there is no buyer/seller, the transaction is concluded at the nearest price level.

Slippage depends on a huge number of factors, and often it reaches such values ​​that automatically deprive the trader of the opportunity to earn.

The order slippage, first of all, should be paid attention to by traders who prefer scalping. Short-term traders should pay as much attention to this factor as they do to spread, swap, and broker commission.

It is important to know that the higher the volatility of the applied currency, the higher the slippage value.

The following factors influence the amount of slippage:

• Efficiency of processing the application by the broker.
• What type of account is being used.
• Application processing technology.

Price slippage can be observed at the time of creating and closing an order at the market price or if a trader uses pending orders.

What Factors Affect Price Slippage

The factors influencing slippage should be considered in more detail.

1. Volatility is an indicator that reflects the speed of fluctuations in the value of a currency pair. Volatility depends on factors such as:

• The general economic environment, which depends on fundamental factors.
• The activity of traders, which, as a rule, is observed during the activity of certain trading sessions. The highest activity is observed during the London trading session. Trading in America also plays an important role, especially during the release of important news.
• Sounding of serious news. Activity quickly grows if the news release does not confirm the forecast. will help you track the release of important news.

1. Trading account type. Almost all brokers provide traders with various types of trading accounts, which have their own distinctive features. Accounts of the Standard or Classic type are usually used by novice traders. Such accounts do not require a large deposit, but they are characterized by an average order execution speed, which, as you should understand, is characterized by high slippage. ECN accounts have a faster execution speed, but you will need a larger amount of money to open them. HDD or STP accounts have the fastest execution speed and modest fees, but they also require a large amount of capital.

1. Order execution type. When opening a position, you can choose the type of execution. Instant Execution means that the deal will be created at the price of the order. When creating this type of order, slippage is completely absent. But with this execution, the deal may not open, and the trader will receive an offer to open an order at a different price, this is called a “requote”. Market Execution means that the position will be created anyway, possibly even at a different price.

Despite the fact that slippage at first glance is a negative phenomenon, it also has positive aspects.

If you encounter slippage when creating trades, this is an important sign that you are indeed trading on the interbank exchange.

The presence of slippage is characteristic of ECN accounts, in which the positions you create are brought to the interbank market. Thus, you get the opportunity to trade with other market participants, and not against a broker company.

Despite all the above, the lack of slippage is also not a bad sign.

How to get rid of price slippage

The next thing to mention is how you can protect yourself from slippage. Protective equipment, first of all, should be selected in accordance with your trading style. If you are driving and then slippage will not bring you any inconvenience. But if you like scalping, then it is worth developing effective measures that will help you reduce losses due to slippage.

For scalpers, the choice of a trading account is of great importance. It is best to use those accounts that promise a high speed of order execution. Remember that the declared speed does not always coincide with the actual one. Personally, I prefer to open accounts with trusted brokers such as Alpari and FxOpen.

Scalpers need to determine the time when the market is most active and stop trading during this period. Such advice will not be useful to those traders who use strategies designed to trade during high volatility.

To avoid high slippage rates, try not to trade during important economic news releases. It is advisable for scalpers to close all their orders half an hour before the appearance of an important news message and continue trading several hours after its publication.

When choosing a type of trading account, it is best for traders who use intraday strategies to pay attention to the types of accounts STR, HDD and ECN. Most of the brokerage companies present on the domestic market have such accounts; they are able to provide a high speed of order execution, which, in turn, helps to avoid slippage.

Best Choice STR-accounts are for scalpers, as they make it possible to conclude transactions with maximum efficiency, and the absence of intermediaries both has a positive effect on the speed of processing transactions and makes trading safer, because unscrupulous brokers do not have the opportunity to slow down the execution of positions .

The optimal execution type is Instant Execution. At the same time, it is recommended to remember that this type of execution, when conducting intraday trading in a market with high volatility, can cause massive. For this reason, it is recommended to choose the type of execution depending on the trading strategy used.

Another proven method of reducing the likelihood of slippage losses is to use pending positions instead of market positions. At the same time, it is important to remember that only limit orders do not have slippage. This happens due to the fact that limit orders have a certain price level value, which allows the brokerage company to prepare in advance for its execution.

You will not be able to completely get rid of slippage when creating positions in the foreign exchange market. The described methods of dealing with the occurrence of slippage should be used in such a way that they do not have a negative impact on the trading strategy you use.

You should also remember that you may encounter slippage due to various technical problems. Such problems include delays between the broker's server and your trading platform, as well as poor internet speed.

Such problems are solved very easily, you just need to change the Internet provider, as well as choose a broker company that provides its customers with better services.

From all of the above, we can conclude that in order to minimize the impact of slippage on the results of intraday trading, it is necessary to complete the following points:

1. Ensure a good internet connection.
2. Set up the trading platform in such a way that it works as quickly as possible.
3. Try to use only limit trades.
4. Use currency pairs with low volatility.

In addition to the above, it is best to trade on higher time frames to minimize losses, as when using the M5 time frame, even a small slippage of one pip will have a negative impact on your income.

Also, in no case do not trade at the time of the release of important news, because due to the fact that at this time a huge number of traders create transactions in one direction, a serious liquidity problem may arise, which will cause slippage.

I hope today's lesson will help you increase your profits in the Forex market. Remember that there is no need to fight against slippage, it is enough just to take it into account when creating transactions.

A diligent beginner who came to Forex, mastered the basics technical analysis, who has worked out his strategy and tactics for and achieved a stable increase in the virtual deposit, in anticipation of real earnings, opens a trading account with a Forex broker he likes and starts trading, not even suspecting that there are many "pitfalls" in Forex, some of which are - requotes and slippage.

Requotes and slippage in Forex trading

The concepts of requote and slippage in Forex are inextricably linked with each other. Traditionally, we use a simple example. The trader opens on the EUR/USD currency pair at point 1 at the level of 1.29442. The price goes in the right direction, the trader decides to take profit at point 2 at 1.29874.

However, during the processing of the order by the broker, the price dropped below point 2, and instead of enjoying the growth of money on the deposit, the trader observes something like this.

The trader is again trying to take profit, and he succeeds only at point 3 at the level of 1.29755, which is almost 12 points less than expected. Is it worth mentioning that in the euro / dollar pair, when trading with a standard lot, 12 points is 120 dollars? Another option is also possible, when it sometimes brings a loss of several tens of points more than planned.

What really happened?

In fact, the trader has become familiar with slippage and requotes. Under slippage Forex understands the difference between the price at which the trader declared the execution of the order and the actual price at which the broker executed this order. That is, slippage occurs when, during the processing of an order from a trader to the liquidity provider executing it (and this is a fraction of a second), the price changes its value and execution at the stated price becomes impossible. Slippage can be positive or negative, depending on where the price is going.

There can be several reasons for slippage:

• High foreign exchange market, especially during the publication of important economic releases, such as the decision on interest rate or NonFarm Payrolls;
• Slow execution of orders due to communication failures when transmitting an order on the side of the trader or broker;
• And, as it is not sad - the fraud of the broker himself. It is worth noting that the so-called or “kitchens” sin this, which deliberately delay the execution of orders, since the trader’s loss is their earnings.

With requotes, everything is much easier. Requote (from English "re-quote")– this is a re-request of the broker about the execution of the order by new price. There is such a delay due to the same reasons that we have described above. If the price is moving fast and the broker is only executing at the price (Instant Execution) specified in the order, then requotes can be a significant problem when trading, for example, on good news.

Rice. 3. An example of a repeated price request.

Instant Execution and Market Execution Order Execution and Slippage

For a deeper understanding of the process, it is worth understanding the different ways of executing orders. There are Instant Execution and Market Execution systems. What is their difference?

In the Instant Execution order execution system, the broker will execute the order exactly at the requested price or issue a requote if it changes, as in the example above.

Let's say a trader sends a broker a request to open a position to buy EUR/USD at a price of 1.2950. Order processing is not instantaneous and may take up to 20 seconds. During this time, the following options are available:

• The price has not changed - the broker will fill the order at the requested price.
• The price went down - the broker will fill the order at the requested price.
• The price went up - instead of executing the order, the trader will receive a requote message.

The advantage of the Instant Execution system is that the entry is made according to the requirements set by the trader in advance.

In the Market Execution order execution system, the broker will execute the order not at the requested, but at the current market price.

The same situation: a trader sends a broker a request to open a position to buy EUR/USD at a price of 1.2950. The following options are possible:

• The price remained in place - the broker will fill the order at the requested price.
• The price went up or down - the broker will open a deal at the current price.

The advantage of the Market Execution system is the fast execution of orders. The disadvantage is that the order is executed at the current price. In the case of increased volatility, the price may change abruptly and there is a high risk of getting an order opened at a price that has a large discrepancy with the requested one.

Ways to deal with slippage in Forex

In fact, slippage in Forex is not only unpleasant, but also often unprofitable. There are several ways to deal with slippage. They do not give a 100% guarantee that slippage will be eliminated, but they will minimize the risk of a loss if it occurs.

Method #1: Adjusting orders in the MetaTrader 4 terminal

When opening a new order in trading terminal In MetaTrader 4, a trader can set the maximum deviation from the requested price, if it is exceeded, the order will not be executed, and the trader will receive a requote message.

Method #2: Using pending orders

The use of the Limit and Stop groups, as well as StopLoss and TakeProfit, will allow you to avoid slippage in most cases, although with very jumps prices, they will not give the desired effect.

Method #3: Choosing the Right Broker

When choosing a forex broker, you should carefully read the technical conditions for order execution, which, by the way, beginners often ignore, paying more attention to all kinds of bonuses. Most of the time-tested ones use the speed of order execution as a competitive advantage.