How to avoid slippage?

[panzer]

I am new to Forex and just have several months experience, and I see slippage is very common in trading with most brokers, is there a way to avoid it?

 

[wantus]

I am new to Forex and just have several months experience, and I see slippage is very common in trading with most brokers, is there a way to avoid it?

Yes you can avoid slippage on your orders if set a max pip deviation at order opening. If the size of slippage will exceed the number of pips you set, platform will issue a requote to your orders. I set 5 pip on Hotforex as max pip deviation on my news orders.

 

[sindarin]

It is hard to avoid slippage, well i want to get small rate of negative slippage but in exchange i will get huge chance of getting positive slippage. I use SL and TP so slippage usually happen but not as much as i can see usually only 1 pipette up to 1 pips difference only. If you want to avoid slippage, just cut your loss or profit.

 

[blackdiamond]

Yes you can avoid slippage on your orders if set a max pip deviation at order opening. If the size of slippage will exceed the number of pips you set, platform will issue a requote to your orders. I set 5 pip on Hotforex as max pip deviation on my news orders.

Do you mean Trailing stop? I don't understand how to set a max pip deviation?

 

[AliMuh]

I was sure that all brokers have slippages in their work actually.

 

[blackdiamond]

Yes, because they are not liquidity provider, all broker receive price from LP and forward it to trader through their platform, so it's impossible for 100% their trades are filled at expeceted price.

I am trading with hotforex, there are slippages, but rare and I don't often trade in news release for large pip movement. So I can manage it.

 

[sindarin]

Avoid slippage only can be done by cut the profit or loss by yourselves, but this is so tiring today i got positive slippage with only few pipette on NZDUSD because i prefer to put TP rather than cutting the profit by myself. Slippage could be useful or hateful depend on what kind of slippage you get.

 

[blackdiamond]

Slippage could be useful or hateful depend on what kind of slippage you get.

Normally, most slippage are hateful

 

[gabi]

slippage is like really normal with brokers, in my opinion its unavoidable especially with brokers processing large volume of trades during heavy traffic or events, the key is just to avoid busy times or just deal with the slippage, some slippage are better than others, I encountered slippage at hotforex but its really manageable, there is just once that i had to contact execution but got reimbursed.

 

[sininfinity]

During normal market hours there should not be any slippage. Slippage occurs when there is a volatile event like when important economic news comes out.

 

[blackdiamond]

slippage is like really normal with brokers, in my opinion its unavoidable especially with brokers processing large volume of trades during heavy traffic or events, the key is just to avoid busy times or just deal with the slippage, some slippage are better than others, I encountered slippage at hotforex but its really manageable, there is just once that i had to contact execution but got reimbursed.

Nice post. But could slippage is caused intentionally by broker? I thought it's possible but need a confirmation from experienced trader.

 

[swinger]

During normal market hours there should not be any slippage. Slippage occurs when there is a volatile event like when important economic news comes out.

You are right, as a trader if you are in a trade, then you cannot avoid slippage by any method. Instead what can be done is that you should avoid trading at any high impact news time, which are mostly the cause of slippage and if you are in a trade, then you should lock your profit or close partial or even full position.

 

[gabanda]

to avoid slippage, do not trade when the news release. Trading when the news is very dangerous and therefore we need to know when news releases that will provide security for our account

 

[sininfinity]

You are right, as a trader if you are in a trade, then you cannot avoid slippage by any method. Instead what can be done is that you should avoid trading at any high impact news time, which are mostly the cause of slippage and if you are in a trade, then you should lock your profit or close partial or even full position.

Actually those are the times when people can make good amount in a short period of time. There are lots of traders who wait for those high impact news times to make lots of money in a short period of time.

 

[gabi]

sadly i would say YES, some slippage can be intentional some are good at hiding the fact, the best way to tell is basic comparison between 2-3 brokers, by looking at the charts, but one thing for sure if there is a slippage and its really really bad, then by all means do contact the broker and have it investigated, it might be a lost cause but trust me it tells you alot about the broker and how they handle things.

 

[gabanda]

if we want to avoid slippage then we should not be trading when the news. Trading news especially when big news is often slippage. try to avoid trading when news release

 

[cheet0z321]

Obviously, due to technological reasons, there will always be some slippage between the requested price and the execution price. Nevertheless, we should find a broker that allows trading with minimum slippage that will not kill your account. We can avoid it with keep a lookout for high impact news and check the fundamental background of the currency pair you trade.

 

[sininfinity]

Nice post. But could slippage is caused intentionally by broker? I thought it's possible but need a confirmation from experienced trader.

It can be done by brokers. I remember FXCM was charged by court for intentional slippage to make more money.

 

[gabanda]

if we do not want to experience slippage then we need to avoid trading when news or when the market opens and closes. this is to prevent slippage. Slippage is inevitable because it depends on market conditions

 

[sininfinity]

During news times or some important economic events, liquidity becomes thin and in most cases slippage occurs. So slippage is undesirable and it would be best to avoid trading those times when we know there is a high chance of slippage to occur.