Learn Trading Costs Slippage
Slippage
Slippage is the difference between the price you expect and the price you actually get filled at. It’s not “random broker pain” by default—most slippage happens when liquidity is thin or price moves fast, and it can affect market orders, stop orders, and sometimes even limits.
Risk warning: This content is for educational purposes only and not financial advice. Forex trading involves risk, and you can lose money.
Slippage in forex
Slippage is the difference between the price you expect and the price you actually get filled at.
- Most common: news, rollover, Sunday open
- Hits hardest: market orders + stop orders
- Reduce it: trade liquid hours, size down
Slippage is an execution cost — tiny in calm markets, nasty when liquidity disappears.
Slippage Explained (Why You Get a Different Price)
- Negative slippage: you get a worse fill than expected.
- Positive slippage: you get a better fill (it can happen too).
- Market orders are more exposed to slippage than limit orders.
When slippage is common
- Major economic news releases.
- Sudden headlines and risk events.
- Low liquidity hours or instruments.
- Weekend gaps (for stops triggered at open).
How to measure slippage in your own trading
- Write down the expected price: the price you clicked (market), or the trigger price (stop).
- Compare with the fill price: the actual executed price from your trade history.
- Convert to pips: slippage (pips) = difference in price ÷ pip size → pips vs points.
- Tag the context: news, session change, rollover, or weekend open (patterns appear fast).
- Check fairness: if you never see positive slippage, learn how your broker handles execution → requotes & order rejection.
If slippage is hurting your results, continue with how to reduce slippage.
Why beginners should care
Slippage can increase your loss beyond what you planned, especially if your stop loss is hit in a fast move.
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