Slippage refers to the difference between the expected price of a trade and the price at which the trade is actually executed. Slippage often occurs during periods of higher volatility when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade. Therefore, when you consider a broker, you should also pay attention to their slippage.
In forex, slippage occurs when an order is executed, often without a limit order, or a stop loss occurs at a less favorable rate than originally set in the order. Slippage is more likely to occur when volatility is high, perhaps due to news events, resulting in an order being impossible to execute at the desired price. In this situation, most forex dealers execute the trade at the next best price unless the presence of a limit order ceases the trade at a preset price point.
While a limit order can prevent negative slippage, it carries with it the inherent risk of the trade not being fully executed if the price does not return to a favorable amount. This risk increases in situations where market fluctuations occur more swiftly and significantly limit the amount of time for a trade to be completed at an acceptable price.
In short terms, slippage happens when a trader gets a different price at the time the trade is made than the amount he expected when he entered the trade. It can happen to any trader regardless if he’s trading stocks, currencies, or futures. Exness guarantees no slippage for almost all pending orders executed at least three hours after the opening of trading on a particular FOREX instrument.
Exness states that if the price indicated in a pending order falls into the gap, and after the gap, the difference between the first market quote and the cost of the order will equal or exceed a certain number of points (also known as gap level) on a particular instrument, then the order should be executed according to the first market quote. In other remaining cases, the order execution price will correspond to the price specified in the order.
In order for Exness to ensure no slippage for the absolute majority of pending orders, they use some of the most advanced technology available in their MT4 terminal, guaranteeing the most precise execution of pending orders. What this technology does is that it optimizes the algorithms behind interactions with liquidity providers. This way, limit orders and stop orders will be executed at the exact price the trader specified, without risking or losing more capital than they expected. This technology and the way it performs orders changes the trading environment for Exness most popular Mini account and Classic accounts. If you still have doubts, you can try the Exness demo account for free.