What Is Slippage in Forex Trading?
Slippage is the difference between the expected cost of a trade, and the actual cost of a trade. It is usually the difference between the price at which a trade was expected to be filled, and the price at which it actually was filled. It is a common occurrence in forex trading and happens both positively and negatively. When the difference is positive, it is referred to as positive slippage, while when it is negative, it is referred to as negative slippage. Slippage can be caused by a variety of things, including a lack of liquidity in the market, volatility, news announcements and incorrect order entry.
IC Markets Execution Speed
IC Markets is a highly regarded global broker known for its low spreads and fast order execution. Their excellent order execution technology places them at the top of their game when it comes to trading speed. The average slippage for forex trading on IC Markets is usually less than 0.3 pips, and they pride themselves on maintaining a level of accuracy and speed that is unparalleled in the industry. Their lightning-fast order execution time enables traders to take advantage of opportunities quickly and efficiently without sacrificing accuracy or liquidity.
How to Minimize Slippage in Forex Trading
Slippage in forex trading can be a major issue if not managed properly. The best way to minimize slippage is to use stop-loss orders, which are orders that are placed to automatically reduce losses if a certain price is reached. This will limit the risk of losses and help to ensure that slippage is minimized. Additionally, it is important to ensure that the chosen forex trading platform is reliable, and that the trader has access to sufficient liquidity in the market. This will help to ensure that slippage is kept to a minimum.
Understanding the Basics of Slippage
Slippage is a common occurrence in forex trading. It occurs when there is not enough liquidity in the market, or when the market is moving too quickly. This can cause your order to be filled at different prices than you expected. Slippage can be both positive and negative, depending on whether the market moves in the direction you anticipated or not.
All traders must be aware of slippage before making decisions on their trades. This is why understanding the basics of slippage is important for any trader looking to maximize their profits. Knowing the average slippage in the market is also important, as it can provide a better idea of how much your trades may be affected.
The Average Slippage of IC Markets
IC Markets is one of the largest independent retail forex brokers in the world, and as such, they offer competitive spreads on most major currency pairs. While they don’t advertise their average slippage, many traders report experiencing very minimal slippage when trading.
Based on trader reports, IC Markets typically offers its clients a 0.02 pip spread on the EUR/USD, and after adding the commission equivalent of 0.2 pips, the total spread is still under the 0.05 pip mark. For other currency pairs, the average spread tends to range from 0.10 pips to 0.15 pips.
IC Markets and Slippage
Slippage is an unavoidable part of trading commodities, not just forex. As such, it’s important to be aware of the potential for slippage when trading with IC Markets. While customer reports have generally been positive when it comes to slippage, it’s still wise to be aware of the potential risks.
For instance, one IC Markets trader reported a case where their stop order was executed 23.61 USD above the market. When they queried the firm about the issue, IC Markets replied that slippage is a normal occurrence and nothing out of the ordinary occurred.
Overall, IC Markets are usually quite reliable when it comes to minimizing slippage. However, understanding the potential risks is still important for making informed trading decisions.