You click buy at 1.08510, and the trade opens at 1.08513. Or a stop loss set at 1.08200 closes the trade at 1.08170. In both cases, the fill was not the price you had in mind. That difference has a name, and it is a normal part of trading in a live market.
This guide explains slippage in forex: what it is, why it happens, which orders it affects in MetaTrader 5, and the few things that make it bigger or smaller.
Key takeaways
• Slippage is the difference between the price you expected and the price you were filled at.
• It happens when price moves before your order executes, or when there is not enough volume at your price.
• It can be negative, positive, or zero; a fair execution model allows both directions.
• Market orders, stop orders, and stop losses can slip; limit orders fill at your price or better.
• Volatility, liquidity, time of day, and order size change slippage far more than anything else.
What is slippage in forex?
Slippage is the difference between the price you expected and the price your order was actually filled at. It happens when the market moves between the moment you send an order and the moment it executes, or when there is not enough volume available at your price. Slippage can be negative, positive, or zero.
Slippage works both ways
If you buy and the fill is higher than expected, or sell and the fill is lower, that is negative slippage: it costs you. If the fill is better than expected, that is positive slippage. On a market-execution model, orders fill at the price available when they reach the market, so both directions occur. Over many trades, traders using fair execution should see both, not only one.
Why slippage happens
Price moves while your order travels
An order takes time to travel from your device to the server and to be matched. In quiet conditions, price barely moves in that time. In a fast market, it can move several points, and the order fills at the new price.
Not enough volume at the best price
Every price level has a limited amount of volume available. If your order is larger than what is offered at the best price, the remainder fills at the next level, and the average price is worse. This mainly affects large orders and thinly traded instruments.
Gaps
Sometimes price jumps from one level to another with no trading in between, most often at the weekly open or when major news lands. A stop order or stop loss sitting inside that gap fills at the first available price on the other side.
Which orders can slip
| Order | Can it slip? | Why |
|---|---|---|
| Market order | Yes, either way | Fills at the best available price when it reaches the market |
| Buy Stop / Sell Stop | Yes | Becomes a market order once the level is reached |
| Stop loss | Yes | Also becomes a market order when triggered, so gaps can fill beyond it |
| Buy Limit / Sell Limit | Only in your favour | Fills at your price or better, never worse |
| Stop limit orders | Only in your favour | Places a limit order once triggered |
| Take profit | Usually at your level or better | After a gap in your favour, it can close at a better price |
The trade-off with limit orders is that they guarantee price, not execution. If the market moves past your level quickly, a limit order may not fill at all.
What changes slippage
| Factor | Less slippage | More slippage |
|---|---|---|
| Market speed | Calm, steady prices | News releases, sudden headlines |
| Liquidity | Major pairs in busy sessions | Exotics, holidays, the rollover period |
| Time | London and New York overlap | Weekly open, quiet hours |
| Order size | Small relative to available volume | Large relative to available volume |
| Order type | Limit orders | Market and stop orders |
| Connection | Stable, low latency | Weak or unstable connection |
Notice that most of these are about when and how you trade, not about the broker. Your connection plays a part, but a fast connection in a fast market can still slip.
How much slippage costs
Slippage is measured in pips or points, like a spread, and costs the same: pips times pip value times lots. On EUR/USD, 0.5 pips of negative slippage on one standard lot costs $5; on 0.10 lot it costs $0.50. On a single trade, that is small. On a scalping strategy with hundreds of trades a month, it can be the difference between a strategy that works on paper and one that works live.
To measure your own, open the History tab in MT5 and compare the price you saw when you placed each order with the price you received. A simple spreadsheet over a month tells you how much slippage you actually pay, and when.
A weekend gap, step by step
Suppose you buy 0.20 lot of EUR/USD at 1.08500 on Wednesday with a stop loss at 1.08200, 30 pips away. At $2 per pip, you are risking $60. The market closes on Friday at 1.08300, and over the weekend there is unexpected news. On Monday, the market opens at 1.08050.
| Item | Planned | Actual |
|---|---|---|
| Stop loss level | 1.08200 | 1.08200 |
| Fill price | 1.08200 | 1.08050 (first available price) |
| Distance from entry | 30 pips | 45 pips |
| Loss at $2 per pip | $60 | $90 |
Nothing went wrong with the order. Price simply never traded between 1.08300 and 1.08050, so the stop filled at the first available price. If a weekend gap would hurt your account, reduce your position size before Friday's close, or close the position. Figures are illustrative.
How to reduce slippage
1. Avoid market orders in the seconds around major releases unless your strategy depends on them.
2. Use limit orders when the exact price matters more than being filled.
3. Trade liquid instruments during their busiest sessions.
4. Keep order size reasonable for the instrument's normal volume.
5. Allow for slippage in your stop placement and risk calculation, especially over weekends.
6. Keep a stable connection, and use a VPS if you run automated strategies.
Slippage in forex cannot be removed, only managed. Choose the right order type, trade at the right time, and build a little room for it into every plan. To compare how SnabbX Standard, Elite and ECN accounts are priced, visit our Accounts page.
Frequently asked questions
What is slippage in forex?
Slippage is the difference between the price you expected and the price your order filled at. It happens when the price moves before execution, or when there is not enough volume at your price.
Can slippage be positive?
Yes. If the market moves in your favor before your order fills, you get a better price. On a fair market-execution model, both positive and negative slippage occur.
Why did my stop loss fill at a worse price?
A stop loss becomes a market order once triggered and fills at the next available price. If price gaps through your level, the fill can be beyond it.
Do limit orders slip?
Not against you. A limit order fills at your price or better. The trade-off is that it might not fill at all if price moves away quickly.
Is slippage a sign of a bad broker?
Not by itself. Slippage happens on any market-execution model. A warning sign is slippage that only ever goes against you, never in your favor.
