Why it happens.
Slippage occurs when price moves between sending an order and its fill, or when there is not enough liquidity at your price.
When it is worst.
- During major news releases.
- At market opens and after weekend gaps.
- In thin hours such as daily rollover.
Reducing it.
- Use limit orders where possible.
- Avoid trading seconds before high-impact news.
- Account for possible slippage when sizing near a daily loss limit.
FAQ