What is positive slippage in forex trading?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers EU editorial desks (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
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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.