A common scenario in fast-moving markets is clicking "Buy" or "Sell" at a specific price, only to see the trade open at a slightly different price. In the financial industry, this is known as Slippage.
What Causes Slippage?
Slippage is not a platform error; it is a reality of trading in a live, global market. It occurs because of the milliseconds it takes for your order to travel from your computer or phone to our trading servers and be executed.
During times of extreme volatility (for example, immediately after a major economic news announcement), the price can move very quickly. By the time your order reaches the market, the original price you saw is simply no longer available.
Positive vs. Negative Slippage
The platform always executes your trade at the next best available market price.
Negative Slippage: The next available price is worse than your requested price.
Positive Slippage: The next available price is actually better than your requested price, giving you an immediate advantage.
How to Manage Slippage:
While slippage cannot be completely avoided, you can reduce its impact by avoiding trading during major news events when instrument availability is low and prices are moving rapidly.
If you have questions about a specific trade execution, please email support@traderise.com with your ticket number.