JustChartsWhat Is Slippage in Trading, and How Can You Reduce It?
Slippage is the difference between the price you expected when you placed an order and the price at which it actually filled. It happens when price moves or liquidity runs out between your click and the fill — most often around news, at market opens and with large orders. Slippage can be negative or positive.
Key facts
- Slippage
- fill price − expected price
- Most common
- news releases, weekend gaps, thin markets
- Affects
- market and stop orders (limit orders can’t slip worse)
- Can be positive
- yes — a better price than expected
- Guaranteed stop
- no slippage, usually for a fee
Why slippage happens
A quote shows the best price available for a limited size. If price moves before your order arrives, or your order is larger than the volume at that price, the rest fills at the next available price. In calm markets this is usually a fraction of a pip; around big news it can be many pips.
Example
Your sell stop on EUR/USD is at 1.0800. A weak data release sends price straight from 1.0810 to 1.0780 with almost no trades in between. Your stop triggers at 1.0800 but fills at 1.0785 — 15 pips of slippage. On 1 standard lot that is about $150 more than planned.
When is slippage worst?
- Seconds around high-impact releases such as NFP, CPI or central-bank decisions.
- The Sunday open, when prices can gap past weekend orders.
- Low-liquidity hours, exotic pairs and small-cap crypto.
- Large position sizes relative to market depth.
How to reduce slippage
- Use limit orders for entries and take-profits — they never fill at a worse price.
- Avoid opening trades in the minute before major news.
- Trade liquid markets during active hours — see forex market hours.
- Consider a guaranteed stop-loss if your broker offers one: it closes at your exact level for a premium.
- Build slippage into your risk: if your stop could slip a few pips, size the position accordingly.
Frequently asked questions
Is slippage the broker cheating?
Not usually — it is a normal result of fast markets and limited liquidity. Regulated brokers should also pass on positive slippage when price moves in your favour.
Do limit orders have slippage?
Limit orders cannot fill at a worse price than your limit, but they may not fill at all.
Why did my stop-loss close at a worse price?
A stop becomes a market order once triggered. If price jumped past your level, it filled at the next available price.
Put it into practice
Live charts, an economic calendar and trading calculators — free with a JustCharts account.
Check news times before tradingThis article is for education only and is not financial advice. Trading leveraged products carries a high risk of losing money. Contract sizes, trading hours and leverage limits vary by broker and country — always check your own broker’s specifications.