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Thread: FX Dictionary: SLIPPAGE

  1. #1
    nicky2k
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    Question FX Dictionary: SLIPPAGE

    Dear PROs, could you please explain to me and other newbies what is SLIPPAGE and what is the harm of it.

    Why everyone hates it when your broker is "slipping" and so on...

    Please, shed some light on this topic.

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    i want to know also

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    Slippage occurs when the interbank price feed for the broker has a gap due to very high volatility.

    If for example, eur/usd shoots up between 1.3300 and 1.3305 in one "tick" instead of the usual 1.3300-1.3301-1.3302-1.3303-1.3304-1.3305 in succession, a stop loss at say 1.3303 may not be honoured and you may be slipped to 1.3305 or by 2 pips.

    The feed for FX Egypt appears to be liquid compared to some other brokers I have used however so slippage, while highly unlikely is not impossible. I've not had it happen to me yet.

    Before you ask, "What is a Tick?"... A tick is a change of price in a variable timeframe that can be measured in milliseconds. Just look at a tick chart for any currency and you will see what I mean by watching it move.
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    you say that slippage though highly unlikely can happpen and that one may be dropped 2 pips. Just recently I read someone else posted he was slipped by 45 pips. Is this possible ?( I think it was you rebatefx)..here
    http://www.fxegypt.com/forum/showthr...light=slippage

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    Quote Originally Posted by moneydeep View Post
    you say that slippage though highly unlikely can happpen and that one may be dropped 2 pips. Just recently I read someone else posted he was slipped by 45 pips. Is this possible ?( I think it was you rebatefx)..here
    http://www.fxegypt.com/forum/showthr...light=slippage
    I think that experience was more price manipulation by that particular broker than slippage. That kind of nonsense is purely criminal. sm_upset

    If there is ever any slippage on FX Egypt, it will be beyond their control.
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  6. #6
    nicky2k
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    Quote Originally Posted by RebateFX.com View Post
    Slippage occurs when the interbank price feed for the broker has a gap due to very high volatility.

    If for example, eur/usd shoots up between 1.3300 and 1.3305 in one "tick" instead of the usual 1.3300-1.3301-1.3302-1.3303-1.3304-1.3305 in succession, a stop loss at say 1.3303 may not be honoured and you may be slipped to 1.3305 or by 2 pips.

    The feed for FX Egypt appears to be liquid compared to some other brokers I have used however so slippage, while highly unlikely is not impossible. I've not had it happen to me yet.

    Before you ask, "What is a Tick?"... A tick is a change of price in a variable timeframe that can be measured in milliseconds. Just look at a tick chart for any currency and you will see what I mean by watching it move.
    Thank you very much for explaining what slippage is, I belive that it can be used for both, advantage and disadvantage.

    I mean, wouldn't you mind if your TP is 1.3305 but due to slippage, then your position gets closed at 1.3310?
    I mean, then you gain extra 5pips!

    But then again, if you look at SL... then things could get messy, with slippage one could loose extra 5pips...

    Anyway, as I see, this kind of stuff does not really depend on the broker, unless someone esle thinks the opposite, then please correct me.

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    Ok I am getting all this info aout slippage into my head. But does it happen that often? I've been using demo account on fxegypt for over a month now and I've never been slipped. Or maybe I just couldn't tell.

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    Quote Originally Posted by nicky2k View Post
    Anyway, as I see, this kind of stuff does not really depend on the broker, unless someone esle thinks the opposite, then please correct me.
    Some brokers slip on purpose, then blame it on the customer. sm_upset
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  9. #9
    nicky2k
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    Default How do you know?

    Quote Originally Posted by RebateFX.com View Post
    Some brokers slip on purpose, then blame it on the customer. sm_upset
    Ok, here is another stupid question:

    How does one tell that the broker is slipping you on purpose? The only way I can think of is checking with other beoker's charts... but don't you think its a pain in the butt to always doublecheck everything? Or maybe you only doublecheck if you see a slippage?

    But then again, it could be some technical error, slow communication and so on... there is no way to prove it, is there?

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    Even if the broker was slipping you on purpose nikki could you do anything about it? PRobhably not. You'd just move onto another broker.

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    Quote Originally Posted by nicky2k View Post
    Ok, here is another stupid question:

    How does one tell that the broker is slipping you on purpose? The only way I can think of is checking with other beoker's charts... but don't you think its a pain in the butt to always doublecheck everything? Or maybe you only doublecheck if you see a slippage?

    But then again, it could be some technical error, slow communication and so on... there is no way to prove it, is there?
    When you are trading on multiple brokers, you notice straight away if a broker is being unfair to you

    Quote Originally Posted by moneydeep View Post
    Even if the broker was slipping you on purpose nikki could you do anything about it? PRobhably not. You'd just move onto another broker.
    If you have the money, you could try and sue, but mostly just moving brokers is all you can do. And here I am
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    Talking about slippage on another broker (*********) some months back there was a huge slip of about 80pips on G/U where the charts just went crazy. So many people lost a lot of money that day and other so much more. I'm hoping that this won't happen here.

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    Quote Originally Posted by FXManiac View Post
    Talking about slippage on another broker (*********) some months back there was a huge slip of about 80pips on G/U where the charts just went crazy. So many people lost a lot of money that day and other so much more. I'm hoping that this won't happen here.
    We had slippage 1 time with old MT4 for about 15 pips, now working on new MT to predict such a problem.

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    why do these problems happen? Is it just because of lag?

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    I dont think its because of lag..

    Well how could a slip of 45 pips happen just due to lag?

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