What does a futures slip mean?
The slip point of futures refers to the gap between the order point and the final transaction point. In other words, there is a price difference between the actual transaction price and the pending order price. Generally speaking, the slip point in futures is the gap between futures contract and sales contract, which can be basically ignored. However, if the market suddenly changes greatly, it will lead to a large price difference in the middle, which will lead to slippage.
Why is there a slippery spot?
There are many reasons for slippage, mainly in the following three categories:
1 Hardware reasons. When the market price fluctuates, the transaction price of the operation is inconsistent with the pending order price due to network delay or server problems.
2 human reasons. If someone controls the background of gold trading, there will be some differences between the quotation of the gold trading platform and the actual quotation, which will lead to the failure of gold traders to buy in time when buying, and to sell in time when selling, which will also lead to slippage.
3 Other reasons. There are also many states that traders can't control. For example, sharp fluctuations in market conditions can also lead to slippage.