slippage in forex:

Definition and Explanation of Slippage:




Slippage forex market mein hota hai jab ek trade ki ummideed qeemat aur asal qeemat mein farq paida hota hai. Yeh tab hota hai jab bazaar mein tashweesh aur bid aur ask qeemat ke darmiyan bara fark hota hai. Iss se trader woh qeemat hasil karta hai jo usne ummideed nahi thi, jis se nuqsaan ka khatar ya moqa miss ho sakta hai. Slippage dono taraf ho sakti hai, ya toh musbat ya negative, bazaar ke haalaat aur order ke qisam pe munhasar hota hai.

Slippage forex market mein aam hai kyunki yeh bazaar ki tarjuman hai. Jabki stock exchanges centralized platforms pe trade execute karti hai, forex trades decentralized hoti hai aur alag-alag market participants dwara execute ki jati hai. Iss ka matlab hai ke prices alag-alag platforms aur liquidity providers ke darmiyan farq kar sakti hai, jis se slippage ka khatra paida hota hai.




Factors Influencing Slippage:




Kai masail slippage pe asar andaz ho sakte hai jo forex market mein traders ke experience pe farq paida karte hai. Ek sab se important masla tashweesh hai. Jab bazaar ziada tashweesh mein hota hai, tab qeemat ke farq aur tezi se harkat karne wale bazaar ke imkaan ziada hote hai, jis se slippage barh sakti hai.

Slippage pe asar andaz hone wale masail mein liquidity bhi shamil hai. Kam liquidity ki surat mein, jaise kisi important khabar ke samay ya trading hours ke bahar, kuch market participants kisi mukarrar qeemat pe trade execute karne ke liye tayyar nahi hote. Iss ki wajah se bid-ask spread bara ho jata hai, jis se slippage barh sakti hai.

Slippage pe asar andaz hone wali cheezq order ke qisam bhi hosakti hai. Market orders, jo mojooda bazaar ke qeemat pe execute hote hai, slippage se ziyada mutasir hote hai limit orders se. Limit orders ummideed qeemat ya is se behtar pe execute hote hai. Jabki limit orders slippage se bacha sakte hai, lekin agar bazaar mukarrar qeemat se door harkat karti hai, toh unhe execute karna mushkil ho sakta hai.





Slippage and High-Frequency Trading:




High-frequency trading (HFT) ek trading strategy hai jis pe milliseconds ke andar bade numbers mein orders ko execute kiya jata hai. HFT algorithms musbat liquidity ko barhate hai aur spread ko kam karte hai, lekin dusre market participants ke liye slippage ko barha sakte hai.

HFT algorithms market ke tahluqaat tezi se parhne ke liye banaye jate hai, jis se chote price discrepancies ka faida uthate hai. Lekin yeh kamal ki tezi aur bigadte hue prices ki wajah se zyada tashweesh aur sudden price changes paida kar sakte hai. Forex market mein order execute karne wale traders ko HFT algorithms ka asar mehsoos ho sakta hai, jahan in algorithms ne prices tezi se tabdeel karke trades ko pehle execute kar liya.




Managing Slippage:




Slippage forex market mein trading ka lazmi hissa hai, lekin traders iss ka asar kam karne ke liye strategies istemal kar sakte hai. Ek tareeqa limit orders istemal karna hai jab bhi mumkin ho. Mukarrar qeemat tay karte hue, traders negative slippage se bach sakte hai aur yeh ensure kar sakte hai ke orders sirf mukarrar qeemat pe hi execute hone chaiye.

Is ke ilawa, traders ko trading kay samay market ki volatility aur liquidity ko gehrai se monitor karna chahiye. High volatility ya kam liquidity ke dauraan, trading strategies ko adjust karna ya trading se bilkul bachna bhi behtar ho sakta hai takay slippage ko kam karne mein madad mil sake.

Is ke sath hi, traders ke liye zaroori hai ke woh ek reliable aur reputable forex broker chune. Bazaar mein ek se zyada liquidity providers ke access wale brokers tight spreads offer kar sakte hain aur slippage ke chances ko kam kar sakte hain. Traders ko broker ki order execution policy ko bhi ghor se samajhna chahiye, khaas kar slippage ke bare mein, taake orders ka kaisa execution hoga woh saaf ho sake.




Slippage in the Context of Risk Management:




Slippage forex trading mein risk management strategies par significant asar dal sakta hai. Traders ko stop-loss aur take-profit levels set karte waqt potential slippage ka khayal rakhna chahiye. Be-faida slippage badi se badi nuqsaan ka sabab ban sakta hai, jabke positive slippage se munasib munafa kay target chhoot sakte hain.

Slippage ke asar ko kam karne ke liye, traders stop-loss orders aur guaranteed stop-loss orders (GSLOs) ka istemal kar sakte hain. GSLOs... (Please specify GSLO in Roman Urdu as it is an abbreviation.) mein mojood orders ka execute hone ko qeemat par guarantee deti hain, chahe market trader ke khilaf chalne.

Is ke ilawa, traders ko regular tor par apni risk management strategies ko jaanch aur adjust karna chahiye taake market conditions aur potential slippage ko hissa banakar behtar control mil sake. Slippage ke mumkin asar ko risk management plan mein samajhne aur shaamil karne se traders apne nuqsaan par behtar control pa sakte hain aur apne capital ko behtar tareeqe se hifazat kar sakte hain.

Yakayak guzarish hai ke slippage forex market mein trading ka aik laazmi hissa hai aur is se matlab expected aur actual execution price ke beech ki tafawat hai. Kuch factors, jaise market volatility, liquidity, aur order ka qisam, slippage ka darja asar dal sakte hain. High-frequency trading bhi slippage par asar dal sakta hai, jahan HFT algorithms prices ko tezi se adjust kar ke dusre market participants ke agey trades execute karte hain. Traders limit orders istemal karke, market volatility ko monitor kar ke aur ek reputable broker chunte huye slippage ka intizam kar sakte hain. Slippage ko risk management strategies banate waqt bhi ghor se sochna chahiye takay potential nuqsaan par behtar control mil sake.

Assalamu Alaikum Dosto!

Slippage

Forex market ki khasiyat yeh hai ke is mein koi bhi choti cheez nahi hoti. Kisi bhi zahiri tafseel ko lambi dori par dekha jaye toh woh ahem nuksan mein tabdeel ho sakti hai. Har qisam ki keemat ka chart dekhein - quotes har second mein badal rahe hote hain. Kai trading strategies aise tafseelat par mabni hoti hain ya jinhe market noise bhi kehte hain. Scalping, pipsing strategies - yahan trade ka maqsad sirf kuch pips ya daso pips ho sakta hai. Lekin trading session ke doran bohot se positions hoti hain. Imagine karein ke har order execute karte waqt aik deri hoti hai jismein price sirf aik point badal jata hai. Yani ke aik pip zaya ho jata hai. Aur agar aise sau trades hain trading session mein? Yani her din sau points zaya ho rahe hain. Yaqeenan, har kisi ko slippage ka samna karna parta hai. Yeh phenomenon trade ka return potential kaise asar andaz hota hai, isliye zaroori hai samajhna ke yeh kyun hoti hai aur kya is se mutaliq nuksan rok sakte hain.
Bari had tak, slippage tab hoti hai jab ek order us waqt execute hota hai jab woh kholne waqt se mukhtalif price par hota hai. Yani, do events ke darmiyan quotes mein aik chhalaang hoti hai. Iske liye mukhtalif wajahat ho sakti hain, jese ke market ko asar andaz hone wale ahem khabron ka. Kabhi-kabhi slippage bohot ziada bhi ho sakti hai, kuch so points tak.
Trader ke liye price slippage ka imkan uske diye gaye orders par mabni hota hai. Do tarah ke orders hote hain - limit aur stop. Limit orders aise price par execute hote hain jo order lagane ke waqt se ziada faida mand hoti hai. Yani, trader chahta hai ke woh asset us waqt khareede ya beche jab uski keemat order lagane ke waqt se kam ho. Aur usko yeh mauqa mil jata hai jab asset desired direction mein move karta hai, bilkul specified buy/sell price par. Limit ke mukhalif mein, stop aise price par execute hota hai jo order lagane ke waqt se kam faida mand hoti hai. Agar yeh buy order hai, toh iski price market ke current price se ziada hoti hai. Aur agar yeh sell order hai, toh iski price current price se kam hoti hai. Yeh ek qisam ka insurance mechanism hai jo price ko predicted value se door ho jaane ke maamle mein financial nuksan se bachane mein madad karta hai.
Limit order trader ki khuwahish ko darust karta hai ke woh position us price par kholna chahta hai jo uske liye sab se faida mand hai. Aisa order aam taur par aik order to buy/sell ko darust karta hai. Order foran execute ho jata hai jab asset ki value specified point tak pohanch jati hai aur doosra trader usko qubool kar leta hai. Isliye limit orders hamesha specified price par execute hote hain. Stop orders ki maqsad thoda alag hoti hai - asset ko buy/sell karna jab uski quotes order mein di gayi value tak pohanch jayein. Yani, specified order value ke bohot qareeb.
Orders ke types ke farqat par mabni yeh wazeh ho jata hai ke stop order poori tarah se aik bid to buy/sell nahi hota, kyun ke aise order ko market mein foran place nahi kiya ja sakta. Warna uski instant execution uske creator ke liye nuqsaan deh hogi. Stop order execute hoga jab market specified price tak pohanchegi. Haqeeqatan mein, woh pehli aisi price par execute hoga jo broker ke liye dastiyab hai.
Ek misal dekhte hain. Trader ne asset ki value 1.2315 par stop to buy laga di hai. Iska matlub hai ke order market mein dakhil hoga jab asset ki value pehli martaba 1.2315 tak pohanchegi. Lekin keemat hamesha barabar tarah se nahi badalti aur hamesha sirf aik pip badalti nahi hoti. Dusri batain, aisi surat mein jab price 1.2315 ke barabar nahi hoti, toh qareebi price 1.2318 ho sakti hai. Order isi price par execute hoga. Jis tarah trader ne specify kiya tha aur actual execution price ke darmiyan fark 3 pips hoga. Yeh hai slippage.
Aksar price slippage apne maqasid ke liye target asset ke spread ke barabar hoti hai, is liye shuruwat ke traders dono concepts ko confused kar lete hain. Technically, slippage ka ek khaas case hota hai jab market opening (maslan, haftay ke baad) par closing aur opening prices ke darmiyan kafi farq hota hai. Iski wajah yeh hoti hai ke jab market bekaar hoti hai, toh quotes par asar andaz hone wale ahem events ho sakte hain.

Slippage k Types (Positive & Negative Slippage)

Slippage pending orders mein har market mein hoti hai. Currencies, cryptocurrencies, stocks. Hamesha ek mumkin hai ke price chart kuch points aik saath "jump" kare. Kyunki price kisi bhi direction mein move ho sakti hai, is liye do munkin situations hoti hain, jo ke positive aur negative slippage kehlate hain.
Positive slippage tab hoti hai jab asset ki price woh waqt gir jati hai jab order buy ke liye laga hota hai ya badh jati hai jab sell order lagta hai. Dusri batain, agar aapne for example 1.0056 par bechna chaaha aur slippage ki wajah se 1.0058 par becha, toh aapko 2 extra points milte hain. Aisi surat e haal kam hoti hai, lekin markets mein zyada volatility wale mamaloun mein yeh mumkin hai.
Zyada baar traders negative slippage ka samna karte hain. Yeh tab hoti hai jab buy order execute hota hai aur actual price asset ki declared price se ziada hoti hai. Aur ulta, jab sell order execute hota hai aur actual price declared price se kam hoti hai. Is case mein, nuksan slippage ke magnitude par poori tarah depend karta hai.

Slippage Ki Reasons

Humne price slippage ke mechanism aur qisam ko dekha hai, sirf causes par ek jhalak dali hai. Ab is par gaur karte hain aur iske causes ko pehchante hain, jisse aap samajh saken ke kaise khud ko potential slippage losses se bacha sakte hain.

• Volatility
  
  
  Volatility ek maqdisi hisaab hai jo asset ki qeemat mein waqt ke saath hone wale tabdilat ko reflec karta hai. Volatility ko aik ghante, ek din, ya ek haftay ke doran dekha ja sakta hai. Jitni zyada volatility hogi, utna zyada price ki "movement range" hogi. Volatility tabdeel ho sakti hai aik ghante mein, aik din mein ya aik haftay mein, is par asar daalte hain jitne bhi factors hote hain jo asset ki qeemat ko mutasir karte hain.
  Maslan, raat mein volatility fitri tor par kam hoti hai, lekin jab ahem khabrein market ko asar andaz karti hain, toh volatility bohot zyada ho sakti hai. Iske ilawa, news aur economic situation ke alawa, volatility ko target asset ke saath mojood trades ki kul tadad bhi asar andaz karti hai. Isi tarah, jitni zyada volatility hogi, utna discrete (jumpy) hoga chart par price ka movement aur utni zyada slippage hone ke imkanat badh jaenge.
• Order Execution Ki Raftaar
  
  
  Aapke orders ko execute hone ki raftar woh waqt dikhati hai jisme broker order buy/sell asset ko bhejta hai aur actual buying/selling ke waqt tak. Jo chhota yeh interval hoga, utna behtar hoga, kyun ke is darmiyan value mein tabdilat ho sakti hain aur order aise price par band ho sakta hai jo aapne specify nahi kiya tha.
  Order execution ki raftar broker ke istemal kiye jane wale software aur process par mabni hoti hai, jo ke khud automation par mabni hai. Execution 300 milliseconds ke andar hona aam maqool hai. Execution ek second ke andar aksar critical nahi hoti, lekin 2 seconds se zyada ka time execution ke liye bohot bada masla hai, kyun ke is doran price mein bohot bari tabdilat hoti hai, kam se kam kuch dastiyab points ki slippage hoti hai.
  Yehan do chand chezein hain. Pehli toh yeh ke aksar brokers ki declare ki gayi order execution speed asal speed se mukhtalif hoti hai. Instant execution technical reasons ki wajah se mumkin nahi hai, kyun ke information ka processing thoda waqt leta hai. Dusri cheez, kuch factors broker par asar andaz nahi kiye ja sakte. Maslan, counter requests ki mojoodgi aur liquidity providers ki istehsalat.
• Order Execution Ki Qisam
  
  
  Jaise ke humne pehle bataya, limit orders strictly set price par execute hote hain, lekin unki execution guarantee nahi hoti, kyun ke market mein behtar offers bhi ho sakti hain. Iske alawa, agar counter request ki volume kamzor ho toh partial execution bhi mumkin hai.
  Stop orders (market orders) puri volume mein execute kiye jate hain, lekin price slippage mumkin hai. Behtareen value offer mein sufficient volume na ho sakti hai, isliye baqi volume bids se accumulate kiya jayega jo ke less favorable value par hoga. Is se ye ho sakta hai ke transaction ki average price order execution ke waqt market quote se mukhtalif ho, aur is tarah se kam favorable ho. Bade positions mein, aisa waqt sab se zyada noticeable hota hai. Dhyaan dein ke order types ke sath aur nuances bhi ho sakti hain, kyun ke ye types trading terminal ki functionality par depend karte hain.
• Trading Account ke Type
  
  
  Forex market mein, demo aur real accounts ke alawa, jo ke hum pehle discuss nahi karenge, ye types of accounts bhi hote hain:
  • Standard Account: Ye beginners ke darmiyan khas taur par popular hai. Iski khaasiyat hai ke isme deposit size ka koi khaas restriction nahi hota, leverage ka zyada value, transactions execution ka average speed, aur wide range mein traded instruments.
  • ECN-account - Interbank Trading: Isme trade order execution ki speed aur accuracy zyada hoti hai, leverage relatively low hota hai, aur spreads chhote hote hain.
  • HDD or STP Accounts: Is interbank account type ki main khasiyat hai trader ke order ko process karne ka tareeka. Isme trade order execution ki speed aur accuracy zyada hoti hai, intermediaries aur conflicts of interest ke absence hota hai, aur minimal commissions hote hain.

Slippage Liquidity Par Q Depend Hai?

Liquidity ko define kiya jata hai jab ek asset ko market value ke nazdeek bechne ki jaldi ho. Is definition ke mutabiq, price slippage zyada liquid markets mein kam noticeable hota hai. Ye is liye hai ke prices hamesha change hote hain, lekin zyadatar uncritically. Ye baat for example popular currency aur cryptocurrency pairs ke liye lagu ho sakti hai.
Is ke mutabiq, kam liquid markets (jese ke precious metals ya unpopular altcoins) zyada dangerous hote hain possible losses ke liye slippage ke bais. Kyunki in markets mein price spikes sudden aur significant hone tend karte hain. Achhi khabar ye hai ke agar aapko current market cap pata hai, toh aap approximate slippage calculate kar sakte hain. Ek aur tool spread control hai, kyun ke spread hamesha asset ki liquidity ke inversely related hota hai.

Slippage Spread Se Kaise Different Hai?

Spread bid aur ask price ke beech ka farq hota hai. Bid wo highest price hai jis par traders asset khareedne ke liye tayyar hote hain. Ask wo lowest price hai jis par traders tayyar hote hain ise bechne ke liye. Bid aur Ask prices naturally traders ki desire se aati hain ke wo most favorable terms par trade karna chahte hain (har koi asset sasta kharidna chahta hai aur mehnga bechna chahta hai).
Spread ki wajah se, ek just opened trade hamesha negative balance show karta hai, kyun ke aapne asset ko Ask price par khareeda hai aur aap ise Bid price par bechenge. Broker spread leta hai kyun ke wo apne interbank trades ke nuksan se bachna chahta hai. Ye spread price slippage se kaise alag hai. Spread hamesha mojood hota hai, aur isey broker set karta hai. Slippage broker par asar nahi daal sakta, aur ye sirf external factors ke response mein periodicall appear hota hai.

Kya Slippage Itna Dangerous Hai?

Zyadatar traders ko lagta hai ke forex slippage bura hai. Is wajah se ye impression hota hai ke broker trader ke account ko manipulate kar raha hai. Haqeeqat mein, slippage ke sath kuch bhi galat nahi hai. Balki, ye market ki haqeeqat ko darust karti hai. Matlab, trading interbank market par hoti hai. Often slippage Standart, STP, ECN, aur doosre trading accounts par dekha ja sakta hai, jo trader ke position ke volume par depend karte hain. Is ko sum up karte hain, ye kehna sahi hai ke forex market mein slippage normal hai.


Slippage Disadvantages:


Slippage ko influence karne wale factors ko determine karke, aap is phenomenon se hone wale nuksan ko kam karne ke tareekon par chalein sakte hain. Ways develop karte waqt, trader ki trading style par based honi chahiye. Agar ek trader medium ya long-term trading practice kar raha hai, toh slippage ki criticality itni zyada nahi hoti kyun ke high-return targets ke sath kam trades hoti hain. Scalpers ko ye steps follow karna chahiye.
Sab se pehle toh alag alag brokers ki trading conditions study karni chahiye. Woh broker choose karein jo "instant execution" of orders ka advertising karta hai aur terminal mein "slippage limitation" ka feature provide karta hai. Select karne ka ek acha tareeka ye hai ke short-term trading par specialize karne wale forums visit karein - brokers ke work ke reviews se aap ek minimal slippage wala intermediary choose kar sakte hain.
Identify karein trading times jo market volatility ke sath high hote hain, aur in times mein positions na kholne ki koshish karein. Ye tip wo trading strategies ke liye suitable nahi hai jo highly volatile trading instruments ka use karte hain.
Macroeconomic news release market mein interest ko increase karta hai jis currency pair ke liye news publish hoti hai. Traders ko jo news par trade nahi karte unhein advised kiya jata hai ke news release ke periods se pehle aur kuch time ke liye trading na karein. Macroeconomic news release na sirf earning dene ke liye use ho sakta hai, balki slippage ke result mein significant loss bhi de sakta hai.
Trading account choose karte waqt, short-term traders ko ECN, HDD, ya STP trading accounts ke conditions par dhyan dena chahiye. Zyadatar brokers ke paas ye types of accounts hote hain. Ye accounts required speed of execution provide kar sakte hain, slippage ke appearance ko exclude karte hain. Scalpers STP account par kaam karke appreciate karenge. Trades highest possible speed aur accuracy ke sath execute hoti hain. Intermediaries ki absence na keval trading orders ko process karne ki speed ko increase karta hai, balki trades ki security ko bhi badha deta hai - unscrupulous intermediary companies ke intentionally delayed execution ke possibilities ko exclude karta hai. STP-account ek excellent working tool hai experienced traders ke liye, jo large amounts of funds ke sath kaam karte hain.
Har type of trading ke liye preferred execution type Instant Execution hai. Lekin ye execution type, especially volatile markets par short-term trading ke liye, massive requotes cause kar sakta hai aur trader ke earnings par significant impact daal sakta hai. Is wajah se execution type ko trader ke istemal ki jane wali strategy ke dusre trading conditions ko consider karke select karna chahiye.
Ek aur tareeka losses ko slippage se kam karne ka ye hai ke market orders ke bajaye pending orders ka istemal kiya jaye. Lekin dhyan dein, keval limit orders bina slippage ke execute hote hain. Isi waqt stop orders slippage ke sath execute ho sakte hain. Ye isliye hota hai kyun ke limit order ko predetermined price hota hai jo broker ko uske execution ke liye necessary time limit deta hai.
Metatrader 4 terminal, jise currency market mein trade karne ke liye istemal kiya jata hai, aapke order price aur market supply ka deviation adjust kar sakta hai. Aap ise small set kar sakte hain, phir bhi ek pip se exceed karenge to order work nahi karega. Lekin ye tareeka hamesha use karna possible nahi hota, kuch restrictions hoti hain. Terminal ki instructions aur broker ki conditions ko dhyan se padhna zaroori hai.
Ek aur tareeka slippage se bachne ka ye hai ke news ke doraan trading na karein. News international currency market ka main engine hai. Trading is waqt karna ke liye danger ye hai ke fluctuations ek minute mein both directions mein hundreds of points tak pahunch sakti hain.
Lagta hai ke ek up movement hai, aap usse catch karenge, lekin order execution ke moment par price bahut tezi se neeche chali gayi hoti hai. Order execution ki message na milne par, trader dekhta hai ke losses bohot bade hain aur order ko close kar deta hai unhe fix karte hue. Aur paanch minute baad price phir se up ho jati hai. Is tarah ke price surges par speculate karne ki koshish disastrous results tak pahuncha sakti hai.