Have you faced asymmetric slippage?

[gkintl]

To begin with let me define what officially (as per NFA) an asymmetric slippage is. It is the process of taking undue advantage by confirming orders a few notches away from the prevailing market price. This can be understood by the following example:
Consider that a buyer places a market sell order for EURUSD @ 1.38585 and the order gets executed at 1.38582
Similarly, a market buy order for EURUSD quoting @ 1.38585 gets executed at 1.38588.

If it happens consistently then it means that concerned broker rips you with asymmetric slippage. The usual explanation given to client is that price has changed from the time a client clicks mouse and the time of actual execution of trade. If that is so then at least once we should see a better price. Statistically speaking 50% of the order should be executed as above and 50% in favor of a trader. However, it is always the client who loses. If this is what you experience then you need to seriously check it out with your broker. Imagine such transactions happening millions of times a day. These nickles and dimes from each trade adds up to millions for forex brokers and liquidity providers at the end of the day. Have you faced that with any broker? Pls., share experience without mentioning name.

 

[sindarin]

I never face something like that because until now my broker doing well and i still think that is fine if like that especially when we trade with news, the price is usuallly so fast to move and more than we ever know, but if that is not in volatile time, then asymmetric slippage is really bad thing.

 

[Tom Latham]

Slippage is really irritating, I think selecting the broker is important; because this kind of technical error really can impact on our trading.

 

[sininfinity]

Well non dealing desk brokers should not do these kinds of shady things but there are many ways brokers or liquidity providers can rip off traders.

 

[Vernessh]

That's right. We do not open account without research brokers. When the market is in high volatility our position might be in hard situation because of slippage.

 

[Tom Latham]

That's right. We do not open account without research brokers. When the market is in high volatility our position might be in hard situation because of slippage.

Yes, on the other hand; many brokers create or facing technical error like chart freezing. It’s really very bad by the trader’s side. This is why, news trading is always challenging.

 

[Yananes]

Chat freezing is most common situation during time of sensitive news releases when market price movements are very high. understand that nobody would dare to quote during this few seconds,but it would be fair that brokers openly say that they will not quote rather than make sort of fake chat freeze

 

[Svetlana Loboda]

Chat freezing is most common situation during time of sensitive news releases when market price movements are very high. understand that nobody would dare to quote during this few seconds,but it would be fair that brokers openly say that they will not quote rather than make sort of fake chat freeze

When you are using a good broker; then I’m sure you’ll not face this kind of technical error; I mean chart freezing. Most irritating situation during the news time.

 

[Eduardo Lucchese]

I never feel anything like that.

 

[Gito Dinev]

Asymmetric slippage involves a broker passing negative price movements to you but seeking to capture positive slippage itself.

 

[CarmeloGiroux]

Yes, I faced that twice with my previous broker.