I’m studying the lesson “Choosing a Forex Broker”. I reach to the Summary. In the 3rd point “Instant automatic execution of your orders”, it said that…
“…[B]Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price ‘slippage’[/B]…”
I’ve read this sentence many time but still not get the meaning. [B]Can you give me the meaning of that sentence and the defination of the word price “slippage”[/B]. Thank you very much.
I’m not sure about re-quotes. I imagine it’s the same as slippage. Let’s say you are going to enter a trade say Eur/Usd at 129.00 but your broker doesn’t get you in till 129.12 or higher if you were going long. Usually only happens when major economic reports are coming out. That is called slippage
You got to know during volatile times, a 1-2 pips slippage might happen. Instead for added security, use a limit/stop order to get filled at exact price.
Most brokers require you to verify your order…this takes 2 clicks…the only one click broker I know of is OandA
[B]Thank you very much for your answers[/B]