What Is Slippage?
Slippage occurs when an order is executed at a different price than expected.
Example:
You expect to buy at 1.2500.
The market moves rapidly.
Your order is filled at 1.2503.
The 3-pip difference is slippage.
When Is Slippage More Common?
Slippage can increase during:
- Major news
- Extremely volatile markets
- Low liquidity
- Market gaps
Key Takeaways
- Slippage is a difference between expected and actual execution.
- It can occur in both directions.
- Volatile markets can increase execution uncertainty.
Disclaimer
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
