Avoid or Minimize Slippage in Forex Trading

To minimize the slippage we should first understand why it occurs. In some rare cases slippage can be caused by your broker in order to cheat you but mostly it occurs due to high impact news.

When such high impact news get released, Market moves very quickly. Sometime it can literally move 20-50(even more) pips in a matter of seconds. The order takes at least 100 milliseconds to reach the market, So if market is moving at extremely high speed, there are very high chances that your order will pass at least 5-10 pips before activating your stop loss.

Slippage can also work in your favor if you are expecting to achieve the profit target during high impact news but for a overall positive experience you should avoid trading during the high impact news and hence avoid the slippage.

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