what is positive & negative slippage in forex?
Positive slippage is when your order is filled at a better price than you had specified for example you set a buy limit order for 1.0222 and your broker fills it at 1.0200 it means you got a better deal since you bought at an even lower price than you had expected.
Negative slippage is when your order is filled at a worse price than you had specified for example you set a buy limit order for 1.0222 and your broker fills it at 1.0230 it means you got a worse deal since you bought at an even higher price than you had expected.
Slippage is common when you use pending orders. A limit pending order can give rise to positive slippage while a stop pending order can give rise to negative slippage.
However, heres the real issue; may brokers do not account for positive slippage and they only fill your orders at negative slippage.
When there is positive slippage they dont adjust your order accordingly but when there is negative slippage they quickly fill you in for a worse price.
What Is Slippage?
Slippage is when your trade gets executed at a different price from the one you clicked.
This happens because the market moves so fast that your broker has to fill your order at the next available price, not always the exact one you chose.
Slippage can be positive or negative.
What Is Slippage?
Slippage is when your trade gets executed at a different price from the one you clicked.
This happens because the market moves so fast that your broker has to fill your order at the next available price, not always the exact one you chose.
Slippage can be positive or negative.
1. Positive Slippage (Good)
Positive slippage means you got a better price than you wanted.
Example:
You want to buy at 1.2000, but due to fast movement, the broker fills you at 1.1998.
You bought 2 pips cheaper → good for you.
Or you want to sell at 1.2000, but you get 1.2003 → you sold at a higher price → more profit.
In simple terms:
Positive slippage = you gain.
1. Positive Slippage (Good)
Positive slippage means you got a better price than you wanted.
Example:
You want to buy at 1.2000, but due to fast movement, the broker fills you at 1.1998.
You bought 2 pips cheaper → good for you.
Or you want to sell at 1.2000, but you get 1.2003 → you sold at a higher price → more profit.
In simple terms:
Positive slippage = you gain.
2. Negative Slippage (Bad)
Negative slippage means you got a worse price than you wanted.
Example:
You want to buy at 1.2000, but you get filled at 1.2004.
You bought 4 pips higher → worse for you.
Or you want to sell at 1.2000, but you get filled at 1.1996 → you sold lower than expected.
In simple terms:
Negative slippage = you lose.