What is slippage?
Slippage is when your order is executed at a different price than the one you were quoted. This is due to a time delay – if only for a fraction of a millisecond – between the time your trade is executed and received by the other party.
When slippage occurs, you do not get the price you were quoted. Instead, you get the next best available price. When you place a large order, you could slip because there are not enough buyers or sellers to take your trade.
Slippage occurs when
- There is volatility – Such as news events
- Markets are moving quickly – Such as during a breakout
- Markets are illiquid – Such as during public holidays
- Markets are closed over a weekend
Axi does not offer a guarantee on stop losses. It is possible to receive negative slippage which can result in you losing more than the balance of your account.