Experienced traders tell me that this year is different, that the forex market is very difficult. These few charts may just be the picture to visualise the kind of trading we are going through this year. Besides EURUSD and GBP, I discuss slippage, different broker price feeds.
Traders might not get redress for forex slippage encountered this morning because of GBP’s flash crash but should investigate rigorously if they continue even after the dust has settled. Why?
Stop loss orders can be filled at worse levels if liquidity is not available. This is a forex slippage. SNB’s decision was so big liquidity providers disappeared. Traders’ accounts can have unexpected losses.
I encountered a positive forex slippage today. My position was filled better than I expected beyond target price when market gapped at open.
One glance at advertisement, we saw many forex brokers offering very attractive deals if you were to fund with them. Is this a good thing for you? You might think so. However, this doesn’t make sense especially if all these goodies/freebies come at your expense.
Forex slippage is one reason traders encounter heavy unexpected losses. If you encounter slippage regularly you may have a bad broker.