How the foreign exchange slip point is produced;
1, market quotation failure. Our example above is actually the slip point caused by the fault of market quotation. Under normal circumstances, the liquidity is sufficient and the market quotation is continuous, but when the market fluctuates violently or there is a lot of direct investment, there will be a price fault.
2. Network delay. Generally speaking, foreign exchange trading means that banks provide quotations to traders, and traders provide quotations to customers. When a customer makes a transaction, the transaction instruction arrives at the dealer's server and then is forwarded to the banking system, and the transaction is carried out in the bank. In this transmission process, there is often a slight delay, which may not be seen at ordinary times, but once the market fluctuates violently and the server can't handle it, it will be delayed and a slip will occur.
3. Regularity of 3.MT4 server. MT4 is the international mainstream foreign exchange trading platform. If it is a regular MT4 software, brokers will try their best to ensure the smoothness of the platform. However, if investors accidentally choose an informal dealer, it is easy to slip because of the non-genuine MT4.