Slippage, Requotes and Unfair Price Execution - How Big a Problem
Slippage, Requotes and Unfair Price Execution - How Big a Problem
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orex is an over the counter market. This means there are no centralized exchanges to match
and fill orders independently and impartially. We have to place full trust in the broker to execute our trade orders at a fair price in “the market” and one that doesn’t disadvantage us.
Slippage: How big a problem is it?
Slippage: How big a problem is it?
But when your broker is playing the role of the exchange, there’s clearly huge scope for price manipulation along the way. Price manipulation allows your broker to make a riskless profit using your money. This means you receive unfair execution of your trade orders, often without ever knowing.
It pays to understand how price manipulation can work against you, and check that you are getting fair treatment.
What is Price Slippage?
Put simply, slippage means that the market has moved between the time an order was placed, and the time the order can be filled. Take the following example.
The broker quotes EUR/USD as follows:
Bid 1.05310
Ask 1.05320
A trader receiving the above quote in his trading terminal enters an order to buy EUR/USD at 1.05320. The order is sent to the broker across the network. On receiving the order, the broker then has to check that the client has sufficient funds to cover the new order. This means checking that the client has enough free-margin after taking into account any other open positions.
From the communication transfer to data processing, these steps all create a delay. This means that from the time the broker received the original quote, to the time the broker can fill the order, the live price may have changed. The difference in the quoted price and the fill price is known as slippage.
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Welcome Friends to 's Biggest Technical Analysis Youtube Channel
Our Dream is to make you an Expert in Trading any Market, be it Indian Stocks, Commodity or Forex Trading. We plan to achieve that by:
* By providing you A-Z of Technical Analysis and Fundamental Analysis training,
* By Giving you tools, Strategies and Indicators to know the markets better,
* By Providing you a Demo trading platform free of cost to test the waters
* By Providing you a Mobile App, to Monitor, Study, Analyze and trade on the Go.
* By Providing you Free Honest Product reviews related to Trading.
Our Channel has Videos basic videos from what is Technical Analysis to advanced concepts like Trading Divergences, we have training videos in Trading Psychology, Money Management along with hardcore Technical Analysis videos.
Wishing you all the very best.
.....................................................
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////////////////////////////////////////////////////////////////////////////////////////////
orex is an over the counter market. This means there are no centralized exchanges to match
and fill orders independently and impartially. We have to place full trust in the broker to execute our trade orders at a fair price in “the market” and one that doesn’t disadvantage us.
Slippage: How big a problem is it?
Slippage: How big a problem is it?
But when your broker is playing the role of the exchange, there’s clearly huge scope for price manipulation along the way. Price manipulation allows your broker to make a riskless profit using your money. This means you receive unfair execution of your trade orders, often without ever knowing.
It pays to understand how price manipulation can work against you, and check that you are getting fair treatment.
What is Price Slippage?
Put simply, slippage means that the market has moved between the time an order was placed, and the time the order can be filled. Take the following example.
The broker quotes EUR/USD as follows:
Bid 1.05310
Ask 1.05320
A trader receiving the above quote in his trading terminal enters an order to buy EUR/USD at 1.05320. The order is sent to the broker across the network. On receiving the order, the broker then has to check that the client has sufficient funds to cover the new order. This means checking that the client has enough free-margin after taking into account any other open positions.
From the communication transfer to data processing, these steps all create a delay. This means that from the time the broker received the original quote, to the time the broker can fill the order, the live price may have changed. The difference in the quoted price and the fill price is known as slippage.
//////////////////////////////////////////////////////////////////
Welcome Friends to 's Biggest Technical Analysis Youtube Channel
Our Dream is to make you an Expert in Trading any Market, be it Indian Stocks, Commodity or Forex Trading. We plan to achieve that by:
* By providing you A-Z of Technical Analysis and Fundamental Analysis training,
* By Giving you tools, Strategies and Indicators to know the markets better,
* By Providing you a Demo trading platform free of cost to test the waters
* By Providing you a Mobile App, to Monitor, Study, Analyze and trade on the Go.
* By Providing you Free Honest Product reviews related to Trading.
Our Channel has Videos basic videos from what is Technical Analysis to advanced concepts like Trading Divergences, we have training videos in Trading Psychology, Money Management along with hardcore Technical Analysis videos.
Wishing you all the very best.
.....................................................
forex trading strategies
best forex trading platform
forex trading for beginners
forex trading tutorial
what is forex trading and how does it work
forex trading reviews
forex market live
forex trading wiki
orex trading in india
best forex trading platform
forex trading for beginners
forex trading tutorial
forex trading reviews
functions of foreign exchange market
what is forex trading and how does it work
