Slippage: meaning in forex and gold trading
Slippage is the difference between the price you expected and the price your order was actually filled at.
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Slippage: Slippage is the difference between the price you expected and the price your order was actually filled at.
Why slippage happens
Market and stop orders are filled at the best available price when they reach the market. In fast markets, such as the first seconds after CPI or a Fed decision, prices can jump past your level and the fill comes at the next available price. Slippage can be negative or, less often, positive.
Gaps
A gap over a weekend is an extreme case. If the market opens beyond your stop, the stop is filled at the opening price, so the loss can be larger than planned.
Reducing slippage
Trade liquid pairs during liquid hours, avoid holding very tight stops through scheduled news and use limit orders for entries when the exact price matters. Guaranteed stop orders, where offered, remove slippage on the stop for a fee.
Worked example
Your sell stop on gold is 4,000.00. A data release sends the price from 4,004 to 3,996 in one tick. The stop is filled at 3,996.50, so the slippage is 3.50 dollars, or 350 dollars on one 100 ounce lot.
Common mistakes
- Assuming a stop loss guarantees the exit price.
- Holding maximum size through high impact releases.
If you follow trade signals, for example the gold signals or EUR/USD signals, understanding this term helps you size and manage each trade yourself. The free Forexuro Telegram channel shares daily market updates where these ideas are used in practice.
Related terms
Tools and guides
Frequently asked questions
Can slippage be positive?
Yes. If price moves in your favour before the fill, a market order can be filled at a better price.
Does a stop loss stop slippage?
No. A standard stop becomes a market order once triggered and can slip.
Education only, not financial advice. Trading forex, gold and CFDs carries a high risk of losing money, and leverage magnifies both gains and losses. Past performance is not a reliable guide to future results. Read our risk disclosure.