Slippage in forex market

what is slippage in forex market


Slippage os wakt hote hey jab aik trading order price say fill ho jata hey jo keh matloba price say mokhtalef hota hey yeh aam tr par matloba adwar kay sath sath alla adwar kay sath sath aisay adwar par hota hey jahan par order matloba prices kay sath nahe mell saktay hein


forex mein slippage negetive roshne mein daikha ja sakta hey ta hum market mein yeh aam wakea trader kay ley ache cheez ho sakta hey jab forex trading order ko liquidity frahm kundah ya liquidity ya bank kay zarey fill karay kay ley bhaija jata hey to woh behtaren dasteab price par fill key jatay hein filling ke price request ke price say kam ya zyada ho sakte hey



slippage ke wajah kea ho sakta hey How it avoid



forex mein slippage kaisa hota hey hmaray order humare darkhawsat kardah price par kaiay bharay ja saktay hein yeh sab kuch en baton par wapes challay jatay hein keh aik real market kes cheez par depend karte hey buyer or seller aik specific price or trading specific price selling kund gan ke price barabar hoe chihay to yeh he cheez prices ko opar ya nechay ke taraf lay jate hey
lahza forex trader kay tor par jab hum entry laytay hein 1.3650 100 EURUSD buy karnay ke koshesh kartay hein laken kafe log nahe hein to humen order ko daikhnay ke zaroorat hote hey agle dasteab price to woh EURO zyada price par buy kar saken gay

forex slippage aam stop losses par bhe ho sakta hey jes par stop loss ke level ka ehtaram nahe kea ja sakta tahum granted stop losses hein jo keh aam stop losses ko makhsos level par fill kea ja sakta hey or broker kay zarey fill kea jay ga Broker kay zarey kea jay ga es say keta nazar basic market kay hallat kuch bhe hon or brker kese bhe loss ko bardasht karay ga jo keh slippage kay nateejay mein ho sakta hey

Re: Slippage in forex market

WHAT IS SLIPPAGE?

Slippage occurs when a trade order is filled at a price that is different to the requested price. This normally transpires during high periods of volatility as well as periods whereby orders cannot be matched at desired prices.
Slippage in forex tends to be seen in a negative light, however this normal market occurrence can be a good thing for traders. When forex trading orders are sent out to be filled by a liquidity provider or bank, they are filled at the best available price whether the fill price is above or below the price requested.
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.
EXAMPLES OF FOREX SLIPPAGE

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.
WHAT CAUSES SLIPPAGE AND HOW CAN YOU AVOID IT?

So how does forex slippage occur, and why can’t our orders be filled at our requested price? It all goes back to the basics of what a true market consists of: buyers and sellers. For every buyer with a specific price and trade size, there must be an equal number of sellers at the same price and trade size. If there is ever an imbalance of buyers or sellers, this is what causes prices to move up or down.
So as forex traders, if we go in and attempt to buy 100k EUR/USD at 1.3650, but there are not enough people (or no one at all) willing to sell their Euros for 1.3650 USD, our order will need to look at the next best available price(s) and buy those Euros at a higher price, giving us negative slippage.
If there were a flood of people wanting to sell their Euros at the time our order was submitted, we might be able to find a seller willing to sell them at a price lower than what we had initially requested, giving us positive slippage.
Forex slippage can also occur on normal stop losses whereby the stop loss level cannot be honored. There are however “guaranteed stop losses” which differ from normal stop losses. Guaranteed stop losses will be honored at the specified level and filled by the broker no matter what the circumstances in the underlying market. Essentially, the broker will take on any loss that may have resulted from slippage. This being said, guaranteed stops generally come with a premium charge if they are triggered.
WHICH CURRENCY PAIRS ARE THE LEAST PRONE TO SLIPPAGE?

Under normal market conditions, the more liquid currency pairs will be less prone to slippage like the EUR/USD and USD/JPY. Although, when markets are volatile, like before and during an important data release, even these liquid currency pairs can be prone to slippage.
News and data events can increase volatility drastically. To prepare yourself for these volatile markets, read our tips to trading the most volatile currency pairs, or download our new forex trading guide.