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whether you like positive or negative slippage?

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whether you like positive or negative slippage?

Postby uncle gober » Wed Mar 18, 2015 8:07 am

Slippage is when an order is filled at a price that is different than the requested price.

Most conversations I hear regarding slippage tend to speak about it in a negative light, when in reality, this normal market occurrence can be a good thing for traders. when 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 EURUSD at the current market rate of 1.3650. When the order is filled, there are 3 potential outcomes.

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) while our order is executing, 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)while our order is executing, the order is then filled at this price of 1.3660.

Anytime we are filled at a different price, it is called slippage. I now get maximum profit with an average positive slippage in TICKMILL.
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Re: whether you like positive or negative slippage?

Postby Charles Baksh » Fri Jun 05, 2015 1:08 pm

I really want to go with no slippage at all because I have confident in my own ability and I don’t need any help. Also, it is fair to say mostly slippage is against us so it’s very crucial to work with broker which does not do any manipulation. I have got such company and that’s Nova FX, it’s a regulated broker with great reputation and they never have any slippage, spikes or any kind of issue that can trouble us in trading.
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Re: whether you like positive or negative slippage?

Postby uncle gober » Wed Jun 17, 2015 4:41 am

According to my point of view, slippage can be advantage for Forex trader but destroy our trading concentration. Therefore, I don’t like to trade which broker has slippage problem. Actually, I am using TICKMILL broker which trading broker is very sincere about slippage and requotes. As a result, I get best scalping trading environment for trading.
Become IB of Tickmill
uncle gober
 
Posts: 527
Joined: Mon Apr 01, 2013 12:59 pm
Location: Become IB of Tickmill - ( $6 per lot on a Classic and $2 per lot on ECN Pro and VIP accounts )

Re: whether you like positive or negative slippage?

Postby Charles Baksh » Sat Jun 20, 2015 11:30 am

I can be wrong, but I feel it can’t be advantage unless we are really small traders, I believe that mostly we are at the wrong side of it. It can be devastating for a new comer especially if he is a scalper, hence I will also not commit the mistake of going with broker that has even slight history of slippage. Now for this it’s no rocket science we need to work with a regulated broker Nova FX, it’s perfect with clean history, so we can 100% trust it.
Charles Baksh
 
Posts: 100
Joined: Thu Feb 19, 2015 8:12 pm


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