How To Avoid Stop Loss Slippage In Forex Trading

[moonchild]

Stop loss slippage occurs when you put a stop loss but your positions sill closed in loss, it can happens at anytime in this article we will be looking at ways to avoid it and also what causes it in the first place, slippage generally occurs when there is a high volatility in the market, if you trade volatile pairs like gold, you will see a lot slippage and even some non volatile pairs might experience slippage so it is not a fool proof, when something shocking happens in the news it can cause slippage too so you should take not of that.

Avoiding slippage completely might not be possible because they are abrupt and they are highly unpredictable but you can use some certain techniques to circumvent it, when you are placing your stop loss make sure it is below a high or a low, you can add 20 to 40 pips depending on your account and your account and risk appetite, by doing this when it occurs it will not reach your stop loss and even if it did, you will be safe.

Some slippages gives room to some new zones in the market so they are not entirely useless.

 

[Mary Frederick]

Whenever you need to select a good trdaing broker, you should go for ECN brokers because they use advanced trading technology. For example, I am naming Eurotrader broker as it uses smart bridge technology.

 

[Suba]

In fact, slippage will often be encountered by forex traders everywhere and many novice traders consider it a fraudulent broker. In simple terms Slippage is the difference between the order price and the actual price.
So Sliipage will not always harm forex traders. Slippage is detrimental if we buy certain pairs but are executed a few points higher, and vice versa, slippage can benefit traders if executed a few points lower.

I think slippage doesn't really interfere with trading activities because it doesn't always happen in every trading activity. Slippage occurs due to an imbalance between buyers and traders. So there are several ways to avoid slippage including: avoid trading during news releases, use limit orders, use the maximum deviation feature. etc.