what is positive & negative slippage in forex?

@scooter_mx - 7 months ago - Forex Education

Can someone educate me on the difference between positive and negative slippage, and how to detect it while trading forex or any other instrument?

@emma_durban - 7 months ago

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.