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How to avoid slippage?

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  • How to avoid slippage?

    Slippage is very common with most brokers, is there anyway to handle it in real trading?

  • #2
    Obviously, due to technological reasons, there will always be some slippage between the requested price and the execution price. Nevertheless, you should find a broker that allows trading with minimum slippage that will not kill your account.

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    • #3
      Thanks for your explaination but could long TP/SL reduce slippage?

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      • #4
        Originally posted by lenka View Post
        Thanks for your explaination but could long TP/SL reduce slippage?
        Take profit or Stop loss cannot reduce your loss in case of slippages. Broker process your orders at the first available price after gap, that mean your loss, closed on S/L, can be more than you set and profit, closed on T/P, can be less or negative. To reduce slippages you can set maximum deviation in points from the current price in case broker has Instant execution type, if Market - no chances.

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        • #5
          We must try to find a broker which has normal trading conditions. In my trade with the fresh forex, I never had sudden requotes. And orders never slow down, do not spoil my nerves. Withdrawal also works fine: many options of electronic payment systems, there are credit cards as well.

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          • #6
            I guess slippage is really normal, there is no avoiding it especially if you are going to be trading news lke the NFP release, thats why i just stay clear from it.

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            • #7
              Originally posted by Klimov View Post
              We must try to find a broker which has normal trading conditions. In my trade with the fresh forex, I never had sudden requotes. And orders never slow down, do not spoil my nerves. Withdrawal also works fine: many options of electronic payment systems, there are credit cards as well.
              If you are trading with a good broker then generally these things doesn't happen, brokers with poor systems tend to do such things.

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              • #8
                Originally posted by lenka View Post
                Slippage is very common with most brokers, is there anyway to handle it in real trading?
                as far as i know, in ECN Brokers like Tickmill, slipage happens because in their liquidity provider , no order can counter your order
                for example you order buy at 0.7000 but in that area in brokers liquidity , there is no sell order to counter your trade, and the nearest sell order is at 0.7006 , so you will have slipage. because forex trading is a trading, we need a sell order if we are buy, and vice versa

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                • #9
                  Hard to avoid , particularly if you trade around news or periods of high volatility.

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                  • #10
                    Originally posted by lenka View Post
                    Thanks for your explaination but could long TP/SL reduce slippage?
                    Of course not because they're not connected. With SL and TP you can control your risks but its really hard if you trade on platform with bad liquidity. That's why I prefer Hotforex to trade without slippage.

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                    • #11
                      yeah i would say there is no avoiding it, but i guess it hits scalpers the most, and trades with larger lot sizes. we just have to adapt and make it work. but be warry of some slippage (those that are quite suspisious) coz brokers like fxcm and alpari was fined for it. they abuse it i guess.

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                      • #12
                        Just contact your broker for any slippage issues, maybe they can refund to you.

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                        • #13
                          Originally posted by aventador View Post
                          Just contact your broker for any slippage issues, maybe they can refund to you.
                          Yeah got two refunds from Hotforex because of bad spikes, they do honor their agreements and grant true access to interbank markets. Glad that I trade with them.

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                          • #14
                            there are pretty much obvious slippage, but some traders tend to abuse the refund/reimbursement, but i guess fxcm and alpari got fined for abusing NFP releases so, if its that obvious then contact the broker. but there is no avoiding it really

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                            • #15
                              Originally posted by maligno View Post
                              there are pretty much obvious slippage, but some traders tend to abuse the refund/reimbursement, but i guess fxcm and alpari got fined for abusing NFP releases so, if its that obvious then contact the broker. but there is no avoiding it really
                              Yeah that's because true STP brokers like Hotforex are mediators and they can't control or modify the feed they receive and refer to a trader. So if there some problem pops up, don't hesitate to touch base with broker support to seek compensation.

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