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Monday, June 24, 2013

A full explanation of the concept of Slippage

Talking today about the explanation of the concept of Slippage this concept, which is located where all the investors in the forex market and all financial markets as well, there is inevitable, especially in the case of rapid movement of prices when you get sudden event in the market.
In short that is what happens between the time when the investor place an order to buy or sell the currency and the time the deal is implemented. In most cases, the market is in a state of flux Express, for example, if you buy the EUR / USD EUR / USD at a certain price shows the clear at the time that you make a reservation and until such time as it appears in your account to complete it in the deal, including a change An estimated $ 0.0002 dollars normally, and it appears in all trading programs, even if you use the fastest trading system at all.



The example explained If placed an order to buy a pair euro-dollar at 1.2992, but has been installed it in the deal at 1.2995 you will see clearly the approximately 0.0003 located many of the traders in this concept, it is inevitable, especially if the market is in a swift move by the news or Event On the economic front.
The answer to this question is relative, the cases where there is not is decided by whether a bad thing or a good, in some cases, it is not for the benefit of the investor especially when it is developing a purchase order and the price is installed on the screen is less than the price at which he saw when placing an order purchase, and vice versa If you place an order and selling price was installed on the screen is higher than the price at which I saw when I put the sales order. In this case, in the interest of the investor. Unlike these cases, the effect of the bad. Therefore, there is no need because blame mediator or anyone else for this rapid movement in prices.

That the it is a foregone conclusion, and can not be bypassed both in the forex market or market trading stocks and bonds, but a sword double-edged has lead to increased profits or increased losses, but only slightly, the impact is not big he is just a few points from 1 to 4 points .

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