I tried Google search but the explanation makes me more blurry. Anyone can share about the simple meaning of slippage and some example of it?
It’s basically a requote or some term describing the volatility in spread. These days most people refer to it as paying more spread than they usually do on a particular pair
On top of what LG said I want to add that the more slippage you witness the worse your broker is. Slippage is due your brokers lack to get your order filled.
I agree with all of the above, all good explanations…
When in doubt, I always use Investopedia:
Slipage is lets suppose you want to open a trade on EURUSD having price 1.00050 and you hit ASK/BID. It will take some time to send your request to the server and price move from 1.00050 to 1.00080 and your position got open. So the difference in the price is know as the slipage. Please correct me if i am wrong.Thanks
We cover slippage in this lesson:
You’re very, very wrong.
You do, and whereas the facts about “slippage” stated in that lesson aren’t technically incorrect in themselves, unfortunately it’s all terribly misleadingly explained there for people who want to know about the practicalities of trading spot forex for the first time.
The statements made in that lesson referring to “the market” and explaining what slippage is in “the market” fail to recognise that that ISN’T actually the market in which this forum’s members, and other beginning forex traders, will be trading.
Of course they don’t know that and very reasonably assume that it is.
The descriptions there apply to the interbank market, but the people to whom the lesson is addressed aren’t trading in that market at all, but against counterparty market-makers.
Nowhere in that lesson is any explanation of this essential reality acknowledged.
That’s probably why there are some threads in the forum started off by puzzled people asking about “slippage” when what they really want to know about isn’t actually about slippage, per se, at all.
With respect, it would undoubtedly be helpful to re-write the lesson to explain this, or at least to mention it!