Slippage occurs when the execution of a trade or stop order does not happen at the expected price. In simpler terms, you might have aimed for a specific entry or exit point, but due to market volatility caused by rapid price changes, the execution took place at a different point. This is a phenomenon every trader encounters in their trading journey.
Good to know: slippage is an inherent part of trading, influenced by market conditions beyond our control. Top One Trader does not have any control over the broker in regards to slippage.
When Does Slippage Happen?
Situation | Why slippage occurs |
News Releases | Slippage is prevalent during major economic announcements or news releases. In the Forex industry, breaking news causes a rush of activity in the market, which in turn leads to price gaps, causing orders or trades to be executed at different levels than anticipated. |
Low Liquidity Periods | Periods of low liquidity, like holidays or certain market sessions, are characterised by fewer buyers and sellers. This scarcity in participants can result in slippage as there are low volumes of transactions in the market. |
High-Volatility Markets | In moments of high volatility in the markets, prices are bound to change rapidly. This can lead to slippage as orders might be executed at prices that are available, which could be different from your intended level. |
Our Stance on Slippage
At Top One Trader, we believe in transparency. While we strive to provide the best trading environment, slippage is an inherent part of trading that is influenced by market conditions beyond our control.
Please note: Top One Trader does not have any control over the broker in regards to slippage.