Skip to content

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

No results found

View more search results

1 2 3 4 5 6 7 8 9 10
Related search: Market Data
Market Data Type of market
See all Market data search results >

Slippage definition

What is slippage?

Slippage is the term for when the price at which your order is executed does not match the price at which at which it was requested. It occurs when the market moves against your trade and, in the time it takes for your broker to process the order, the original price set is no longer available.

Slippage can happen at any time, due to two main reasons. The first reason is high volatility in the market. If there is a sudden movement of price beyond your stop order, the trade may not be closed in time and the stop may not be triggered at the level at which it was set. The second reason is that there is a gap in the market - this when the market moves sharply up or down with little or no trading in between.

Discover our online trading platform

Take a look at our interactive charts, designed to make technical analysis faster and clearer.

Learn more

Examples of slippage

Say you have a short position on GBP/USD with a stop set at 1.360. Before the market closes on Friday evening, the price is trading at 1.350, but over the weekend, some breaking news causes the market to rise. When trading resumes on Sunday evening, the price is much higher, and the best available price is above your stop - at 1.365. This means the stop order will be filled at the new, higher price.

Pros and cons of slippage

Pros of slippage

Although slippage is normally associated with negative market movement, it can occur in any direction, which means that you can also experience positive slippage. This is when your order is submitted, and the best available price suddenly changes while the order is being executed. Your order could then be filled at a better price.

Cons of slippage

The cons of slippage are evident if negative slippage occurs. Negative slippage is when you have a stop set but it can't be processed quickly enough, and your order is filled at a worse price than expected. This could result in a smaller profit or a large loss.

Build your trading knowledge

Discover how to trade with IG Academy, using our series of interactive courses, webinars and seminars.

Go to IG Academy

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - V - W - Y

See all glossary trading terms

Learn more

Contact us

Trading Services

1 312 981 0498

helpdesk.us@ig.com

Forex trading

What is forex and how does it work?

How to trade forex

The benefits of forex trading

Forex rates

Forex trading costs

Forex margin rates

Margin calls

Learn to trade

Managing your risk

Glossary

Forex news and trade ideas

Trading strategy

Disclosures

Transaction disclosures

B.A.S.I.C. disclosure

AML customer notice

Contact us

New clients: 312 981 0499

Existing clients: 312 981 0498

IG | Disclosures and risk warning | Terms and agreements | Privacy and access | Cookies | Investors

Follow us online:

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. You may lose more than you invest. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. The information on this website is not directed at residents of countries where its distribution, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

IG is a trading name of IG US LLC (a company registered in Delaware under number 6570306). Business address, 1330 W Fulton, Chicago, IL 60607. IG is a registered RFED with the Commodity Futures Trading Commission and member of the National Futures Association (NFA ID 0509630).

IG US accounts are not available to residents of Ohio.

© 2003-2023

Careers | Promotions