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whether you like positive or negative slippage?


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Slippage is when an order is filled at a price that is different than the requested price.

Most conversations I hear regarding slippage tend to speak about it in a negative light, when in reality, this normal market occurrence can be a good thing for traders. when orders are sent out to be filled by a liquidity provider or bank, they are filled at the best available price whether the fill price is above or below the price requested.

To put this concept into a numerical example, let’s say we attempt to buy the EURUSD at the current market rate of 1.3650. When the order is filled, there are 3 potential outcomes.

Outcome #1 (No Slippage)

The order is submitted and the best available buy price being offered is 1.3650 (exactly what we requested), the order is then filled at 1.3650.

Outcome #2 (Positive Slippage)

The order is submitted and the best available buy price being offered suddenly changes to 1.3640 (10 pips below our requested price) while our order is executing, the order is then filled at this better price of 1.3640.

Outcome #3 (Negative Slippage)

The order is submitted and the best available buy price being offered suddenly changes to 1.3660 (10 pips above our requested price)while our order is executing, the order is then filled at this price of 1.3660.

Anytime we are filled at a different price, it is called slippage. I now get maximum profit with an average positive slippage in TICKMILL.

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  • 7 months later...

I don’t like it but I don’t worry much if it happens rarely because that’s okay, but if it starts happening regularly then I would be definitely be worried. I usually see this happening when people do news trading which is bit understandable due to the volatility of the market, but getting any re-quotes or slippage in normal situation is very poor service and we should straight away leave such company since it’s highly risky for our investment. I trade with OctaFX broker which is a 11 times award winning company, so they never manipulation or has any slippage making things so much easier to deal and always end up brining out good consistently due to getting perfect order executed.

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I am against slippage. Because, I lose my trading interest in this broker. By the way, personally I use one of the most protective trading broker TradingBanks where I get no slippage guarantees and really it is. So, I enjoy my live trading very much. On the other hand, here is also available fixed trading spread service for all kind of trading instruments.

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Of course nobody likes negative slippage as it basically means losses for your account. Instead I prefer to get positive slippage on my Hotforex account usually when I trade using pending order I get positive slippage and its really great as basically you earn profit even without entering the trade as its instantly credit to your account.

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  • 3 weeks later...

slippage is slippage, but if its positive then its all good, one of the reason why i avoid news trading,= unless im sure of the results. for now im trading hotforex with gold mostly.

Gold trading with its bearish trend is really great now, I think it will lose more with market almost convinced in December rate hike, I think we can expect gold dropping to 1050 level soon.

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  • 4 weeks later...

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