That is, the execution speed of the trading platform. Traders usually obtain data through exchanges and display them on their own trading platforms. After the customer submits the order, it is submitted to the exchange through the server. When the system price triggers the customer's liquidation instruction, such as the market price list, profit and loss statement, income statement, limit table and other closing prices.
2. The market quotation is interrupted.
Liquidity can be said to be the air of financial markets, and a market without liquidity must be a lifeless market.
3. Market changes.
When the market changes greatly, it is easy to slip. For example, when a big event happens, the market price is easily affected and cannot be traded at a suitable price. When the market fluctuates violently, it also means that the liquidity is reduced, and the low liquidity makes it impossible to execute orders at the originally specified price. Big slip usually happens in big events.
As a day trader, you should avoid trading when major events occur, such as during AP storage meetings. Of course, when the market changes greatly, it is very attractive to traders, but the risk of trading at this time is great. If you are already trading, you may face greater risks than expected because of a large number of slip points.
Of course, sometimes the occurrence of slippage is not due to the above reasons, but may be the deliberate manipulation of irregular traders. We call it an abnormal slip point, often because some irregular traders operate maliciously.
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