Dealing with slippage in forex.

[Tshego]

Slippage
“Slippage” is another problem that stock and futures tradersmust deal with
every day. Slippage is defined as “the difference between estimated transaction
costs and the amount actually paid.”
For example, suppose you purchased 1,000 shares of stock XYZ at a
price of $50 per share. In order to protect yourself in the event that the
price moves against you, you place a protective “stop” order (an order to
sell) at $49. So your worst-case scenario is that you’ll lose $1 per share,
which in this case equals $1,000, right?
Wrong. If the price falls below $49 without touching the exact price
of $49 (remember, stock markets are “thin” compared to forex), one of
two things will happen. Either your order will not be executed at all, or it
will be executed at a price in the vicinity of $49. Amazingly, the executed
price is almost always less favorable than the price you desired! Slippage
cuts into a trader’s profits and is a major headache for stock and futures
traders.
Slippage is rare in the currency market. Many forex market makers
have a “no slippage” policy, giving currency traders a greater degree of
price certainty.

 

[Robert Hills]

Forex is a risky market. Loss is a mandatory thing in this market. As a trader you can not remove losses but can reduce the losses with your experience and strategy. You can stop your losses and make a way to make profit by gathering information and knowledge. Without knowledge it is quite tough to deal with losses.
On the other hand, making profit is also an important thing for any trader. If anyone wants to make profit from this market and want to deal with slippage he always needs to be alert and gather all latest information about market. A reliable helping hand and financial advisor like AtoZ Markets can help him to deal with slippage in forex. They are really helpful for any trader in the forex market.

 

[Sherverty]

Slippage is a problem in all financial markets. And in the forex where traders enjoy fairly small profits on the average trade, slippage could wipe off all the gains you make for one day; this is dangerous.