Now someone mentions that it is nice/good to have a slippage of 5 pips on an order around the 50M.
If that is true, does this mean, you just have a huge slippage on your orders ?
I think of two possible scenarios (both on ECN style broker)
- You take a long position and have slippage of 5 pips (the price goes higher), after a while you sell and the agian you have another slippage (the price goes higher) this time it was in youre favor
- You take a long position and have slippage on buying and selling both 5 pips.
Scenario 1 is OK because sometimes you are lucky and the slippage is good (you buy long and price is dropping)
Scenario 2 is not good because the slippage is always against you.
I think the second scenario is more likely to happen because if you are buying and there is not enough liquidity the price must go up ?
However more than once my logic was flawed, therefore i would like to ask you guys (and girls).
ps: posted it before in the rookie forum but i dont think the thread has a future there because i suspect the people that have a lot of experience with big orders are not there ( but again could be wrong)
If a forum admin read this, the thread in the rookie forum can be deleted.