Education5 min read
Slippage: Why Your Fill Price Isn't What You Expected
Slippage is the difference between expected and actual fill price. Learn what causes it and how to minimise it. Why fills differ from quotes, and how news and.
What Is Slippage?
Slippage is when your order fills at a different price than requested. If you place a market buy at 1.1050 and get filled at 1.1053, that's 3 pips of negative slippage. Slippage occurs when there's a gap between your order price and available liquidity.
Causes
- High volatility: Price moves faster than your order can fill
- Low liquidity: Few counter-parties at your price level
- News events: Spreads widen and prices jump
- Large orders: Your order exceeds available liquidity at the best price
Minimising Slippage
- Use limit orders instead of market orders — you specify the maximum price you'll pay
- Avoid trading during major news releases
- Trade during high-liquidity sessions (London/NY overlap)
- Keep position sizes reasonable — don't exceed typical market depth
Related Articles
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.