Slippage definition

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.

Orders prone to slippage

  • Market orders, where the broker is authorised to make a trade at the best available next price. This can be exaggerated for large market orders, when finding liquidity can be hard.
  • Stops and limits, when a sudden price movement makes it impossible to carry out a trade at the price specified in the order.

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.

With IG

Slippage is a possibility with CFDs. Our CFD accounts offer the ability to add guaranteed stops to a position, in order remove the risk of slippage from trades entirely. As share dealing with IG involves taking ownership of the shares themselves, guaranteed stops are not available.

To activate a guaranteed stop, tick the ‘guaranteed stop’ box on the deal ticket. The buy and sell prices will change to reflect the price of the stop.*

*There is a small, one-off fee when you choose to attach a guaranteed stop.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.