What is slippage?
Slippage is the difference between the price expected for a trade and the price at which the order is actually executed. It can happen when the market price changes between the time an order is submitted and the time it is executed. If the expected price is no longer available, the order may be executed at the next available market quote recorded in Quote History.
📈 What is the difference between the expected price and the execution price?
The expected price is the price at which you expect the order to be executed when you submit it.
The execution price is the actual price at which the order is completed. It may differ from the expected price if market conditions change before the order is executed.
💹 What do positive and negative slippage mean?
Slippage can be positive or negative:
Positive slippage occurs when the execution price is more favorable than the expected price.
Negative slippage occurs when the execution price is less favorable than the expected price.
Whether a price is more or less favorable depends on the direction of the trade.
📝 Example of slippage
Suppose you open an upward trade at $100 and set a Stop Loss at $95. During a rapid price movement, the recorded quotes move directly from $96 to $93, without a quote at $95.
The Stop Loss is triggered when the price crosses the selected level, but the trade closes at $93—the next available quote. The $2 difference between the selected Stop Loss level and the closing price is negative slippage.
Slippage can also be positive. For example, if a Take Profit is set at $105 and the quotes move directly from $104 to $107, the trade may close at $107.
The quotes recorded at the time of execution can be checked in Quote History.
🔍 Why does slippage happen?
Slippage can occur for several reasons:
Market volatility and rapid price movements
During periods of high volatility, prices can change quickly. The expected price may no longer be available by the time the order is executed.
Low liquidity
Liquidity refers to how easily an asset can be bought or sold. When liquidity is low, there may not be enough buyers or sellers at the expected price. As a result, the order may be executed at the next available market quote.
Order execution time
Executing an order requires a short amount of time. The market price may change during this period, especially when prices are moving rapidly.
Gaps between available market prices
Sometimes, there may be a gap between one available market quote and the next. If the expected price is no longer available because of a gap, the order may be executed at the next available market quote recorded in Quote History.
❓ Frequently asked questions
Is slippage a platform malfunction?
No. Slippage is a market-related occurrence that can happen when prices change or the expected price is no longer available during order execution.
Can slippage affect Stop Loss and Take Profit?
Yes. During rapid market movements, the price may move past the selected Stop Loss or Take Profit level before the trade can be closed. If the selected level is no longer available, the trade closes at the next available quote. As a result, the closing price may differ from the Stop Loss or Take Profit level you set. You can verify the quote applied at the time of execution in Quote History.
Why may the execution price differ from the price shown on the chart?
The price shown on the chart does not guarantee execution at that exact price. Market prices may change before an order is executed. Quote History is the source used to verify the market quotes recorded at the time of execution.
Can slippage be avoided?
Not always. Slippage depends on changing market conditions and the availability of market prices during execution.