Slippage is a common concept in trading that affects how orders are executed during fast market movements. This article explains what slippage is, why it occurs, and how it can impact trades when trading with Weltrade.
Bid / Ask / MD
Dear client!
What you’ve experienced is called “slippage”.
Slippage is an event when the execution price of your order differs from what you expected it to be.
Slippage is totally natural for market execution (especially when one is trading some not too liquid assets like HSIHKD, for example).
As to the fact that you can’t see your execution price on the chart, then please, allow us to remind you that in the market execution prices always depend on the trading volume. Thus, at any given moment of time there may be several prices available for executing orders - one price for each available volume. This is called “market depth”.
Usually low volumes get executed at better prices (so called “top of the book”), but it can’t be guaranteed.
Please, remember, that market execution (unlike instant execution) can never guarantee the execution price that you wish to get, even if we talk about something about highly liquid assets.
Unfortunately, MetaTrader doesn’t have a technical capability to demonstrate all available prices for all available volumes available at all times on the charts. The charts in this trading platform are plotted based on top of the book bid price.
That said, you shouldn’t expect to see all your execution prices on the chart at all times.
Frequently asked questions (FAQs)
What is slippage in trading?
What is slippage in trading?
Slippage is the difference between the expected price of a trade and the price at which the order is actually executed.
Why does slippage occur?
Why does slippage occur?
Slippage usually occurs during high market volatility, low liquidity, or fast price movements when orders cannot be filled at the requested price.
What is the difference between positive and negative slippage?
What is the difference between positive and negative slippage?
Positive slippage means an order is executed at a better price than requested, while negative slippage means execution at a worse price.
Can slippage be avoided?
Can slippage be avoided?
Slippage cannot be fully avoided, but it can be reduced by trading during high-liquidity periods and avoiding major news releases.
Is slippage a technical error?
Is slippage a technical error?
No. Slippage is a normal market phenomenon related to how orders are executed under real market conditions.