
Requotes and slippage
Requotes and slippage are bad for any type of forex trade. To avoid requotes, traders, especially scalpers, should choose a fast-trading platform. You should also use a broker that offers fast execution speed if you are a news trader.
In forex, requotes occur when a broker cannot execute an order at the requested price, offering a new price instead. This often happens during high volatility or low liquidity, causing delays and potential missed opportunities. Traders may find requotes frustrating as they disrupt strategy execution.
Slippage refers to the difference between the expected and actual execution price, common in fast-moving markets. While slippage can be positive (favorable price change), it is usually negative, increasing trading costs. Both requotes and slippage highlight market unpredictability. To minimize their impact, traders should use limit orders, choose brokers with reliable execution, and avoid trading during major news events when volatility spikes. Understanding these factors helps manage risks in forex.
Slippage refers to the difference between the expected and actual execution price, common in fast-moving markets. While slippage can be positive (favorable price change), it is usually negative, increasing trading costs. Both requotes and slippage highlight market unpredictability. To minimize their impact, traders should use limit orders, choose brokers with reliable execution, and avoid trading during major news events when volatility spikes. Understanding these factors helps manage risks in forex.
Oct 12, 2021 06:12