What is positive slippage in forex trading?
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- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
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What is slippage in forex trading?
Slippage is the difference between the price you expected to execute at and the price you actually received. Negative slippage costs you money; positive slippage saves you money. On retail forex, slippage is most common during news events, market opens, and weekend gaps. Low-latency ECN brokers minimise it; market-maker brokers vary.
What causes slippage during news events in forex?
Slippage during news (NFP, ECB, FOMC) happens because liquidity providers withdraw quotes as the price gaps. Your stop-loss or market order fills at the next available price, which can be 5-50 pips worse than requested on EUR/USD. ECN brokers see worse news slippage than market-makers, but the trade-off is far tighter spreads in normal conditions.
STP vs ECN broker — what is the difference?
STP (Straight-Through Processing) routes orders directly to liquidity providers without dealing desk intervention. ECN (Electronic Communication Network) connects multiple liquidity providers and traders, with prices set by the order book. ECN brokers typically charge commission with raw spreads; STP brokers often work commission-free with wider spreads. For active traders, ECN usually beats STP on total cost.
Article: Slippage at News Events — A Broker-by-Broker Comparison Methodology
Slippage at high-volatility news releases is the single most important execution-quality differentiator across retail forex brokers. A repeatable methodology for measuring it produces materially different rankings than headline-spread comparison.
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