Slippage

Slippage & Trading During High-Impact News

Slippage is a normal part of trading and tends to occur more frequently under certain market conditions. Understanding why it happens can help you better manage risk.

What is Slippage?
Slippage happens when your trade is executed at a different price than the one you intended. This typically occurs when the market is moving quickly and prices change before your order can be filled.

Why Does Slippage Occur?
In fast-moving markets, price levels can be skipped entirely. For example, if the market moves beyond your stop loss level, your trade may be executed at the next available price instead.

Common Causes of Slippage

• High Market Volatility: Rapid and unpredictable price movements

• Major News Releases: Sudden reactions to economic or political announcements

• Market Rollover Periods: Gaps in pricing between trading sessions