How to Handle Forex Order Slippage
Effectively?
VALIANT MARKETS
As a forex trader, learning technical phrases like "slippage" is essential. It occurs when entering or exiting a trade at a different price than expected, but using limit orders can help minimize losses. Slippage can be positive or negative depending on the direction it takes.
Find more about Slippage Order at Valiant Markets, a new market navigation platform for millennials, and learn How To Handle Forex Order Slippage Effectively. So let's begin!
What Is Slippage?
Slippage is a phrase used in financial trading to describe the discrepancy between a trade's anticipated price and the price at which it is performed. It is a phenomenon that happens when large orders are placed at times of high volatility or when there is not enough purchasing interest in an item to maintain the projected transaction price.
The lag can bring this on between when you place an order and when it is carried out. Other traders can hedge their risk or take a contrary position. This may cause your deal to reach the market at a lower price than you had anticipated.
⦁ Positive slippage means that trade was performed at a higher price than the price you had set.
⦁ Negative slippage signifies that a deal was executed at a price different from the price provided in the order.
Some aspiring forex traders who want to start trading may find the slippage concept terrifying. However, contrary to common belief, slippage may not necessarily be unintentional. One can reduce it or even use it in their trading strategies.
