Slippage is the small difference between the price you expected to get when you clicked "buy" or "sell" and the final price your trade was executed at.
This happens because financial markets move incredibly fast. The price can change in the tiny amount of time between when your order leaves your computer and when it is filled on our servers.
Why You Get Slippage
Slippage is a normal part of trading and is not a mistake. It usually happens for two main market reasons:
1. High Volatility
- What it is: The market price is moving up and down very quickly. This often happens around major economic news releases (like interest rate decisions).
- Why it matters: The price changes so fast that your order is filled at the best available price after the one you initially saw.
2. Low Liquidity
- What it is: There are not enough buyers or sellers actively trading the instrument at that exact moment.
- Why it matters: To fill your order completely, the platform must match you with the next available price level, which might be slightly different from your intended price.
Is Slippage Good or Bad?
On your Tradin account, slippage can work in your favor or against you. It depends on which way the price moves in that split second.
| Type of Slippage | What It Means for Your Trade | Outcome |
| Negative Slippage | You are filled at a price that is slightly worse than expected. | Reduces your potential profit, or increases your potential loss. |
| Positive Slippage | You are filled at a price that is slightly better than expected. | Increases your potential profit. |
| No Slippage | You get the exact price you expected when you placed the order. | The desired outcome. |
How to Manage Slippage Risk
You cannot stop slippage entirely, but you can take steps to manage your risk:
- Avoid Trading During Major News: Markets are most volatile right after important news is released. It is often safer for beginners to wait until the price becomes more stable.
- Trade During Busy Market Hours: When more people are trading, the market usually has higher liquidity. This means there is less chance of significant slippage. For Forex, this is typically when the London and New York sessions overlap (check your Instrument Trading Hours for details).
