Forex market slippage

This is a discussion on Forex market slippage within the Forex forums, part of the Markets category; Hi, I'm starting out on trading the forex market. I checked this site: http://www.ig.com/uk/forex-trading ..and it lists the % of ...

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Old Aug 8, 2016, 4:34pm   #1
Joined Jan 2015
Forex market slippage

Hi, I'm starting out on trading the forex market. I checked this site: http://www.ig.com/uk/forex-trading

..and it lists the % of orders that get filled without slippage.

The % rate is nearly always about 98.XX %

What do they really mean by this?

Do they mean you'll get filled at 'near enough' to your attempted close position?

Obviously, a sudden shift in the market and not being allowed to close a position could easily wipe out your trading account?
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Old Aug 8, 2016, 7:00pm   #2
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Originally Posted by asimpleplan View Post
The % rate is nearly always about 98.XX %

What do they really mean by this?

Do they mean you'll get filled at 'near enough' to your attempted close position?
They mean the order was filled at the order price. For example, if your stop was at 101.50 it was filled at 101.50. Slippage would be anything other than 101.50 - better or worse.
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Old Aug 9, 2016, 4:10am   #3
Joined Sep 2008
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Originally Posted by asimpleplan View Post
Obviously, a sudden shift in the market and not being allowed to close a position could easily wipe out your trading account?
Then you are over leveraging.

Peter
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Old Aug 9, 2016, 4:39pm   #4
Joined Jan 2015
asimpleplan started this thread
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Then you are over leveraging.

Peter
No, let's suppose you take a position in the market with a set Stop Loss, but the market crashes through the SL, and your order not filled, then, in theory your account will be in loss. So, the question is at what point is the loss settled if the market keeps moving against your position?

I assume that a smart trader would ONLY keep enough money in his trading account to maintain a trading position i.e. the one above with a set stop loss.

I read this recently in a book on trading FX:

Quote:
(Rarely, if ever, will a broker guarantee stop losses around the release of
economic reports or other volatile events.)
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Old Aug 10, 2016, 4:28pm   #5
Joined Dec 2004
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Originally Posted by asimpleplan View Post
No, let's suppose you take a position in the market with a set Stop Loss, but the market crashes through the SL, and your order not filled, then, in theory your account will be in loss. So, the question is at what point is the loss settled if the market keeps moving against your position?
A stop order becomes a market order once triggered. That means your trade would be filled at the next available price.

Quote:
I assume that a smart trader would ONLY keep enough money in his trading account to maintain a trading position i.e. the one above with a set stop loss.

I read this recently in a book on trading FX:
Unless your broker guarantees you can't go into a negative balance (check the fine print), if the market goes sharply against you enough to blow through your stop and the automated margin call stop-out, then you'll own the difference.
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Old Aug 11, 2016, 4:06pm   #6
Joined Sep 2013
Quote:
Originally Posted by asimpleplan View Post
Hi, I'm starting out on trading the forex market. I checked this site: http://www.ig.com/uk/forex-trading

..and it lists the % of orders that get filled without slippage.

The % rate is nearly always about 98.XX %

What do they really mean by this?

Do they mean you'll get filled at 'near enough' to your attempted close position?

Obviously, a sudden shift in the market and not being allowed to close a position could easily wipe out your trading account?

Too far-fetched I guess. Only on NFP I think 90% of orders filled with 5-10 pip slippage if not more.
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Old Aug 11, 2016, 5:35pm   #7
Joined Jan 2015
asimpleplan started this thread
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Too far-fetched I guess. Only on NFP I think 90% of orders filled with 5-10 pip slippage if not more.
What? In the forex market, trading the US$/GBP, or the US$/Eur?

I mean, why would there be much slippage in the markets with the greatest liquidity? 5-10 pips is a lot, and would be disastrous for a scalper.
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Old Aug 16, 2016, 7:29am   #8
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Slippage is when an order is filled at a price that is different than the requested price. The slippage is something that occurs for a very short duration int the prices of the forex trading by the broker.
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Old Aug 25, 2016, 6:50pm   #9
Joined Sep 2013
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Originally Posted by asimpleplan View Post
What? In the forex market, trading the US$/GBP, or the US$/Eur?

I mean, why would there be much slippage in the markets with the greatest liquidity? 5-10 pips is a lot, and would be disastrous for a scalper.
Have you traded non farm payrolls? During this crazy volatility slippage, off-quotes, spread widening is a common thing. I would advice you to avoid trading during this time.
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Old Aug 25, 2016, 10:02pm   #10
Joined Jul 2008
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Originally Posted by gerryg View Post
Have you traded non farm payrolls? During this crazy volatility slippage, off-quotes, spread widening is a common thing. I would advice you to avoid trading during this time.
Not unless the data being released is a nobrainer.
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