Forex slippage explained

Slippage, in trading terms, can best be described as having an order filled at a different price to the price initially quoted on the trading platform. However, slippage should be regarded as a positive indication that the market and the trader's chosen market access, is operating in a transparent and efficient manner.

Traders can experience their orders filled in three possible ways; at the exact price quoted, experience negative slippage - whereby their order is filled at a price not in their favour, or experience positive slippage - when the order is filled at a better price than the price originally quoted. The fact that slippage exists should actually be regarded as positive reinforcement that the trader is engaging with a highly efficient, fair and transparent marketplace. Particularly in respect of ECN straight through processing, it would in fact be highly unusual and indeed suspicious, if traders' orders were always filled at the exact price quoted.

In such a marketplace as FX, turning over circa $5 trillion each weekday and executing hundreds of millions trades per day, it is a natural occurrence and reasonable expectation that not all orders can possibly be matched perfectly in such an environment. In a fair and transparent ECN trading environment, the pool of liquidity providers provide the FX quotes, the volatility can change suddenly and dramatically. Therefore, an order is matched instantaneously at the best possible price available, occasionally at the price quoted, or potentially at a better price than expected.

What is Positive Slippage?

Positive slippage is also known as price improvement and it is an occurrence where the price slippage works in a trader's favor.

For example, a trader places an order to BUY 1 lot of EUR/USD at the market price of 1.35050, the order was sent out through the MetaTrader platform to the liquidity provider and then the confirmation message comes back informing the trader that the order was executed at 1.35045. Through the ECN/STP model the trader has experienced positive slippage, they have been filled at a better price, a price more favourable to their initial order.

Open a FREE ECN Account Today!


Forex trading is risky.
You may lose all your invested capital.

FXCC brand is an international brand that is registered and regulated in various jurisdictions and is committed to offering you the best possible trading experience.

This website ( is owned and operated by Central Clearing Ltd, an International Company registered under the International Company Act [CAP 222] of the Republic of Vanuatu with Registration Number 14576. The Company’s registered address: Level 1 Icount House, Kumul Highway, PortVila, Vanuatu.

Central Clearing Ltd ( a company duly registered in Nevis under the company No C 55272. Registered address: Suite 7, Henville Building, Main Street, Charlestown, Nevis.

FX Central Clearing Ltd ( a company duly registered in Cyprus with registration number HE258741 and regulated by CySEC under license number 121/10.

RISK WARNING: Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves substantial risk of loss. It is possible to lose all the initial capital invested. Therefore, Forex and CFDs may not be suitable for all investors. Only invest with money you can afford to lose. So please ensure that you fully understand the risks involved. Seek independent advice if necessary.

The information on this site is not directed at residents of the EEA countries or the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Copyright © 2024 FXCC. All Rights Reserved.