EXAMPLES OF FOREX SLIPPAGE

Source: DailyFX 2020-05-21

To put this concept into a numerical example, let’s say we attempt to buy the EUR/USD at the current market rate of 1.3650. When the order is filled, there are three potential outcomes: no slippage, positive slippage or negative slippage. These are explored in more depth below.

OUTCOME #1 (NO SLIPPAGE)

The order is submitted, and the best available buy price being offered is 1.3650 (exactly what we requested), the order is then filled at 1.3650.

OUTCOME #2 (POSITIVE SLIPPAGE)

The order is submitted, and the best available buy price being offered suddenly changes to 1.3640 (10 pips below our requested price), the order is then filled at this better price of 1.3640.

OUTCOME #3 (NEGATIVE SLIPPAGE)

The order is submitted, and the best available buy price being offered suddenly changes to 1.3660 (10 pips above our requested price), the order is then filled at this price of 1.3660.

Anytime we are filled at a price different to the price requested on the deal ticket, it is called slippage.

Slippage

forex

Forex Slippage

Positive Slippage

Negative Slippage

EXAMPLES OF FOREX SLIPPAGE

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