Have your orders ever been executed at the wrong price?September 20, 2020
Have your orders ever been executed at the wrong price? That was slippage. It’s an issue that every Forex trader inevitably faces at some point. Unfortunately, there is no way to completely eliminate slippage. Still, you can work with it to reduce the chances of getting one.
The faster your order is executed the more likely you’ll open it at the right price. If you want to reduce the number of slippages, make sure your request is delivered as fast as possible:
– Get stable and fast Internet connection, preferably wire
– Close the programs that use traffic (online videos, social networks, etc.)
– If you use a VPS server, choose the closest one to your broker
Use Limit Pending Orders
If your strategy implies pending orders, choose Limit instead of Stop ones. Buy/Sell Limit order will most likely be executed at the set price.
Avoid News Trading
Slippage is often caused by low liquidity that often happens during major news releases. In order to reduce slippage, don’t open any trades at least 30 minutes before and after an event with a high market impact.
Use Higher Timeframes
This won’t stop slippage but at least will reduce its effect. The higher your timeframe, the less you’ll feel a few points difference. Obviously, this solution doesn’t work for aggressive scalpers. But if your trading style allows it, try using H4 or D1 charts.
Adjust Your MetaTrader 4
Did you know that you can manually set the maximum slippage to get in pips? Unfortunately, it doesn’t always work according to your settings, but it definitely increases the chances that your order won’t be executed in case the slippage is too large.