If your order was executed at a different price from the one you requested, this is known as slippage, which occurs when the market price changes between the time your order is submitted and when it is executed. Slippage can result in either a better or worse execution price depending on market conditions. It is a normal characteristic of live market trading and does not necessarily indicate a system error.
Why does slippage occur?
Market prices can change multiple times within a second. When you submit a market order, it is executed at the best available market price, which may differ from the price displayed when you placed the order.
Several factors can contribute to slippage:
- High volatility: Prices may move rapidly during economic news releases, central bank announcements, or unexpected market events.
- Low liquidity: Fewer available buyers or sellers may result in larger differences between available prices.
- Market gaps: When the market reopens after a break, the first available price may differ significantly from the previous closing price.
- Large order size: If there is insufficient liquidity at the best available price, a larger order may be executed across multiple price levels, resulting in a different average execution price.
- Connection latency: A slow or unstable internet connection may delay order submission, allowing market prices to change before execution.
How does slippage affect my positions?
Slippage could be negative or positive depending on actual market conditions at the order execution time.
- Positive slippage occurs when an order is executed at a more favorable price than the one requested. For example, if you place a BUY order at 2,000 but it is executed at 1,999.80, you receive a better entry price.
- Negative slippage occurs when an order is executed at a less favorable price than the one requested. For example, if you place a BUY order at 2,000 but it is executed at 2,000.20, you receive a less favorable entry price.
Can slippage affect my stop loss or take profit?
- Stop Loss: Once triggered, a Stop Loss is executed at the next available market price. This may differ from your specified Stop Loss level.
- Take Profit: Execution depends on the applicable order rules and available market prices. The execution price may differ from your specified level, subject to those conditions.
Is slippage an additional trading fee?
No. Slippage is the difference between your expected price and actual execution price. It affects the price at which your trade is executed and does not appear as a separate fee in your account history.
How can I check my order's execution price?
You can review your order's execution details in MetaTrader 4 (MT4) or MetaTrader 5 (MT5) by following these steps:
- Open MetaTrader 4 (MT4) or MetaTrader 5 (MT5).
- Navigate to the relevant section:
- MetaTrader 4 (MT4): Open the Account History tab to review completed trades.
- MetaTrader 5 (MT5): Open the History tab and select Deals to view individual trade executions.
- Open positions: Check the Trade tab to view positions that are still open.
- Find the relevant trade and review its execution price. In MT5, a single order may be executed through multiple deals at different prices. Review each deal individually, as the Positions tab may display the average execution price rather than the individual deal prices.
- In MT5, an order may be executed in multiple deals at different prices. Check each deal individually, as the Positions view may display the average execution price.
- Check the Journal tab for relevant order request and execution messages, including timestamps, where available.
If you believe your order was executed incorrectly, contact Customer Support Team with your trading account number, order number, and relevant execution details for further investigation.
