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fxcc
Broj poruka : 36
Points : 1055
Date of Entry : 2015-01-27
Godina : 36

Forex Slippage vs. Price Improvement

on Wed Feb 25, 2015 1:01 pm
Who said slippage always goes against you?! Probably your broker.
Forex slippage is an example of a pretty normal forex trading occurrence that is usually spoken of as a bad thing. When it goes against you it is, but slippage can also work in your favour.
Here at FXCC, we treasure transparency. Since we have nothing to hide, here’s the real story about slippage.
Slippage is defined as the difference in pips between the order price and the execution price for a particular transaction.
For example, you ordered to BUY 1 lot of EURUSD at the Market Price of 1.35050, the order was sent out through MT4 to the liquidity provider and then the confirmation message comes back informing you that your order was executed at 1.35055.
Slippage = 1.35050 - 1.35055 = -0.00005 -> -0.5 pip EURUSD = -5 USD

You just lost 5 USD in slippage. It could happen even with an ECN broker when you’re trading at market price due to the fact that prices move so fast, they could change before your order reaches the Liquidity Provider for execution; blame it on network speeds and market volatility.

Interestingly enough though, and this is what most brokers rarely tell you, slippage can actually work in your favour as well. Take the example trade and if the price changes from 1.35050 to 1.35045 you’re actually $5 better off just from the positive slippage.
Shocking – but true. It’s what we call Price Improvement and it’s the part of slippage some brokers like to keep to themselves.
Here’s a little secret: Trade with FXCC ECN broker and shocking stuff like price improvement is one of the things you’ll have to get used to. All part of what we like to call “The truth, the whole truth and nothing but the truth”. FXCC style.
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Vlad
Broj poruka : 217
Points : 1156
Date of Entry : 2015-04-21
Godina : 28

Re: Forex Slippage vs. Price Improvement

on Fri May 15, 2015 8:00 am
It is good, that you don't have slippage problem. I have already been trading with FreshForex, it doesn't have this problem too, But I want to open one more account and will consider your company.
Eric Young
Broj poruka : 29
Points : 72
Date of Entry : 2017-09-07
Lokacija : Slovenian

Re: Forex Slippage vs. Price Improvement

on Fri Sep 29, 2017 8:00 pm
Slippage is the time when a demand is filled at an esteem that is novel in connection to the requested cost. Most discourses I hear as for slippage tend to discuss it in a negative light, when in doubt, this conventional market occasion can be something worth being grateful for traders. For every buyer with a specific cost and trade measure, there must be an identical measure of merchants at a comparative cost and trade appraise. If there is ever an ungainliness of buyers or traders, this is the thing that influences expenses to climb or down. It in like manner happen when a broker needs liquidity. I trade with FXPM. I am happy with them as they dont give slippage an requote.
Roland Branch
Broj poruka : 33
Points : 160
Date of Entry : 2017-07-10
Godina : 40

Re: Forex Slippage vs. Price Improvement

Today at 10:02 am
Sometimes it is hard to trade when you don’t have proper support for trading with proper conditions. There are many brokers making fake promises and when it is time, they show their list of terms and conditions which as a trader 99% do not read properly. AGEA broker is one of them. They are a fraud and provide slippage and requotes. They are not transparent with their activities and policies.
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