Understanding Slippage
Slippage is when an order is executed at the next available
price in the real forex markets. Traditionally, slippage is referred to as a
negative aspect of trading using an ECN, STP or DMA Forex Broker, but in fact,
slippage is often positive for the trader as they experience price improvement.
It is important to understand that slippage is a factor of
trading forex that cannot be altered, edited or controlled. The true definition
of slippage is when an order is filled at the next available price. The cause
and level of slippage is directly affected by latency (the delay in internet
communication between parties involved in executing a forex order). The impact
of slippage is obviously greater during times of high volatility, data releases
and rapid real market movements, slippage can also occur during times where
liquidity is thin (e.g. market open and rollover times).
By using the Equinix Financial Exchange, an industry leading
and respected technology provider, deep liquidity sources and the Free
Forex VPS facility, Yadix delivers an environment that not only is free
from trading conflicts, but also provides each client with the fastest possible
order execution on the STP/ECN forex model across all accounts.
Understanding News Trading
When News Trading during the release of market critical forex
data, markets can become extremely volatile and unpredictable, with sharp
changes in prices within milliseconds, price changes are referred to as
“ticks”. When a currency pair “ticks” aggressively, the markets can often offer
multiple prices per second, these prices are the base of an MT4 candle. It is
during these times that news traders experience slippage, where by the order is
filled at the next available price.
During “news”, there are no controls over real market
spreads and this could lead to greater slippage impact. Like any market,
trading forex relies upon supply and demand which determines the spread. If
everyone in the market wants to buy at the same time (bullish market) there are
less people willing to sell so buy orders can be filled, naturally, this increases
the price available to trade on the platform.
Profitable Trading at Yadix
Yadix is a broker that targets forex trading strategies that can benefit from faster order execution and those that traditionally are understood to be profitable forex strategies. As a broker, we also understand that many strategies are being implemented in automated trading systems (Expert Advisors, Scalping Robots and trading algorithms) and welcomes traders by providing the conditions, execution and tools for you to benefit.
For a consultation to discuss your trading strategy with Yadix, please contact our support team who will happily arrange a time to Account Manager,
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