Slippage has a particular significance in relation to IG's platform. Here, we define slippage in general investing and explain what it means to you when trading with IG.
When the price at which an order is executed does not match the price at which it was made, it is referred to as slippage.
Slippage occurs when the market moves suddenly against your order, and in the time it takes for your broker to process your order the original price stipulated is no longer available. Because of this, slippage is more likely to occur in periods of high volatility, though they can occur at any time.
The best way of avoiding slippage is to plan out trades well in advance, or to make use of risk-management tools like guaranteed stops to eliminate the risk of slippage.
Slippage is a possibility with CFDs and share trading. Our CFD accounts offer the ability to add guaranteed stops to a position, in order remove the risk of slippage from trades entirely.
To activate a guaranteed stop, tick the ‘guaranteed stop’ box on the deal ticket. The deposit amount will change, and it includes the premium we'll charge if your stop is triggered.