Forex slippage refers to the difference between the point where the customer places the order and the actual transaction point. Slippage occurs when the division of a trade is different from the starting quote. At present, foreign exchange slippage cannot be eliminated, mainly because the causes of slippage cannot be removed. And swapping out has a huge impact on Forex trading.

Foreign exchange trading is different from stock and futures trading. Stocks and futures are matched transactions, while foreign exchange trading is a transaction between the customer and the bank through the platform. The bank completes the transaction with the customer, and the bank has a net position. Through slippage, the transaction price is not favorable to the customer, and banks and traders are profitable. Some banks even privately agree on slippage sharing when signing cooperation contracts with traders. Of course, some traders do not push their customers' transaction bills to the market. At this time, slippage is more beneficial to them. Therefore, when choosing a foreign exchange platform, you must choose a platform with stricter supervision.

Extended information:

Forex slippage has the following four characteristics:

1. When non-agricultural and other market fluctuations are particularly severe, usually, Many dealers will become particularly cautious. At this time, many dealers will not quote prices or increase the spread of quotes, which will cause many trading platforms to restrict our transactions before and after the release of non-agricultural data.

2. A regular dealer has no way to deal with the quotation of the circulation dealer. If the spread is enlarged in a short period of time, because the market price is quoted based on the price at the time of purchase, so This will cause investors to be stopped when opening or closing a position even though the price has not reached the stop loss price.

3. In the foreign exchange market, many people on the same platform encounter different prices. This is mainly due to the different quotations of circulation dealers. I would like to remind everyone to wait for the exchange rate to fluctuate violently on non-agricultural nights. You must be aware of this risk when doing so.

4. Some platforms have betting trading platforms. Their transaction orders have nothing to do with the market. They only need to notify the port of setting the MT4 quotation to proceed, which can achieve completely zero slippage.

Baidu Encyclopedia-Slippage