What is slippage? | Forex Factory

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What is slippage?

  • #1
  • First Post: Sep 22, 2006 11:26pm Sep 22, 2006 11:26pm
Can someone please explain to me what is slippage.
I read about it in different posts, but I am still didn't saw anything like this in my account. Probably I just don't understand what it is.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #2
  • Sep 22, 2006 11:29pm Sep 22, 2006 11:29pm
Quoting Andy12
Can someone please explain to me what is slippage.
I read about it in different posts, but I am still didn't saw anything like this in my account. Probably I just don't understand what it is.
Slippage is when a broker cant honor your stop & the price "SLIPS" past your stop. There are other explanations, but this is the worst 1.
  • #3
  • Sep 22, 2006 11:44pm Sep 22, 2006 11:44pm
Thanks for the answer. For my 2 month in Forex, I never experience it. Maybe it depends on which Broker you using.



Quoting bigbear3391
Slippage is when a broker cant honor your stop & the price "SLIPS" past your stop. There are other explanations, but this is the worst 1.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #4
  • Sep 23, 2006 12:52am Sep 23, 2006 12:52am
I thought slippage is when you order is not executed at the price you want. Your order lags during high volume and it put you in at a higher price than what you would have preferred.
  • #5
  • Sep 23, 2006 2:05am Sep 23, 2006 2:05am
slippage mean: when you do an order and not executed at the same price you want, its usualy happens during the news time

EX: U did Buy order @ 1.2222 , Broker pending ur order then enter u @ 1.2230...

so this means 8 PIPS silppage !
Charting Markets into the Future...MǎҖ€¥.
  • #6
  • Sep 23, 2006 3:36am Sep 23, 2006 3:36am
Quoting MaXeY
slippage mean: when you do an order and not executed at the same price you want, its usualy happens during the news time

EX: U did Buy order @ 1.2222 , Broker pending ur order then enter u @ 1.2230...

so this means 8 PIPS silppage !
do u have experience on last NFP news? do u experience slippage? alot?
  • #7
  • Sep 23, 2006 3:53am Sep 23, 2006 3:53am
Quoting bigbear3391
Slippage is when a broker cant honor your stop & the price "SLIPS" past your stop. There are other explanations, but this is the worst 1.
CAN'T?

It's more THEY WONT or DON'T WANT TO.

What's happening lately is dispecable, there doesn't seem to have an honest FOREX broker left.

And why does the price has to always slip against you ha?

What's up with that?

If it really wasn't their fault, you could have a profit from slippage too, not just a loss. In time those would tend to even out.

But NO! God forbid they slip you in your favor!

NO! The huge spread isn't enough for them! They gotta have more! And more! And more!

I'll say it again, there doesn't seem to have a honest FOREX broker left.
  • #8
  • Sep 23, 2006 5:30am Sep 23, 2006 5:30am
Not true imho. During extreme volatile price movements, the banks simply does not give the brokers the prices each tick at a time. Gaps occur simply from the rapid shift in supply/demand. If you decide to trade during those conditions, you have to accept the risk of slippage. The problem lies more in the marketing from those retail brokers who claims they don't slip prices and always honor orders. Sometimes they just have to slip or they lose millions. Advice is, move away from a retail based broker who has a trading desk. Adjust your trading strategies and allow a degree of slippage if you decide to trade volatile conditions. You won't experience slippage "your way" because you are most likely joining the wave of buyers or sellers and trying to jump on the train that pushes in the direction who causes the slip, right?

So stop blaming the brokers...
Always wait for the opportune moment… just be careful not to miss it.
  • #9
  • Sep 23, 2006 7:14am Sep 23, 2006 7:14am
Quoting fxvision
You won't experience slippage "your way" because you are most likely joining the wave of buyers or sellers and trying to jump on the train that pushes in the direction who causes the slip, right?

So stop blaming the brokers...
I will blame the brokers if I want to. That kind of answer is tipical broker propaganda. I know you're not a broker, but that kind of talk is what the brokers want you to think.

You know why you never get sllipage your way? Because the brokers are outright stealing you on the news.

If there ever comes a honest FOREX broker, it will bankrupt all those crappy bucket shops.

They should just be satisfied with the spread IMO. They should be more then satisfied with the spread.

FOREX spreads are huge when compared to their respective futures contracts. But then again futures is a regulated market, not the Wild West Forex is.

If they want more, they should take a freaking risk and trade, stop stealing their customers!

Don't believe a word of that kind of broker propaganda!

There are better times coming for the small customer.
  • #10
  • Last Post: Sep 23, 2006 10:34am Sep 23, 2006 10:34am
Quoting fxkingg
If there ever comes a honest FOREX broker, it will bankrupt all those crappy bucket shops.
The fact is, in my opinion, if there was a 100% honest broker with very very small spreads, no slippage, and no stop hunts, it would probably backrupt itself. During news such as NFP there are SO many people on the right side of the market, making lots of money. Where are the brokers? They are forced to be on the wrong side of the market. Brokers lose money during high news, or at least thats what it seems by my reasoning. But I dont trade the news, so what the hell do I know?
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