ForexSlippage in forex: why orders fill at a different price
Slippage is the difference between the price you expected and the price your order filled at. It happens when price moves between sending the order and its execution, and it can work for you or against you.
What causes it
Fast markets: major data releases and central bank decisions move prices in milliseconds.
Thin liquidity: quiet hours, holidays and exotic pairs have fewer prices available.
Gaps: price can open the week far from Friday's close, skipping over pending orders.
Large orders: a big trade may need several prices to fill.
Positive and negative slippage
If price moves in your favour before the fill, you get a better price. A fair execution policy passes on both. Regulators have criticised firms that pass on losses from slippage but keep the gains, so it is worth reading your broker's order execution policy.
In the UK and EU, brokers must take all sufficient steps to get the best possible result for clients and publish how they execute orders.
Common mistakes
Frequently asked questions
Is slippage normal in forex?
Yes. Small slippage is normal in fast markets and around news. Regular one-sided slippage, where you only ever get worse prices, is a warning sign.
Can a stop-loss slip?
Yes. A normal stop-loss becomes a market order once triggered and can fill beyond its level in fast markets or weekend gaps. A guaranteed stop does not slip.
How do I avoid slippage?
Avoid entering in the seconds around major releases, trade liquid pairs in busy sessions and use limit orders when the exact price matters.