1. What is Slippage?
Slippage refers to the difference between the price a trader sets for an order and the actual execution price.
This usually occurs in highly volatile markets or when liquidity is insufficient, and it is considered a normal market phenomenon.
2. Types of Slippage
Type | Description | Example |
Positive Slippage | Execution price is better than the requested price | Order to buy at 1.1000, executed at 1.0995 |
Negative Slippage | Execution price is worse than the requested price | Order to buy at 1.1000, executed at 1.1003 |
No Slippage | Execution price exactly matches requested price | Order price = Execution price |
3. Causes of Slippage
Slippage often occurs in the following situations:
Major economic data releases or news events (e.g., NFP, CPI)
Low market liquidity (e.g., Asian session, holidays)
Sharp price volatility (e.g., gold surge, oil gap)
Market orders executed faster than price updates
4. AFT Slippage Policy
Item | Details |
Slippage Mechanism | Platform uses true market price matching, both positive and negative slippage may occur |
Market Orders | May experience slippage, executed at the best available price |
Pending Orders (Limit/Stop) | Slippage may occur if the market jumps over the trigger price |
Stop Orders | Cannot fully avoid slippage, but system executes at the closest available price |
Take Profit Orders | Positive slippage may occur (better price than set) |
Slippage Control | “Maximum Deviation” can be set; trades beyond this will be rejected |
Slippage Records | View execution vs. order price in MT5 order history |
5. Difference Between Slippage, Delay, and Rejection
Phenomenon | Description | Common Causes |
Slippage | Execution price ≠ Order price | Market volatility, fast price changes |
Delay | Order execution slower after click | Network latency, terminal lag |
Rejection | Order cannot execute due to slippage beyond tolerance | Deviation too small, highly volatile market |