Slippage Real Account Example – Stop Loss not Activated

Slippage is when the trade is not closed with Stop Loss level you have defined, but it closes at the closest price the server can respond.

Sometimes the trade closes with larger loss than it was predicted because of a slippage on the broker side.

Slippage is not a good thing and appears during news when fast price changes happens on the market.

Broker Server Example of Bid and Price

Here you can see the price leves on Bid and Ask side on the broker server when the slippage happened.

You can see how the price changed quickly and Stop Loss did not activate, but the 4th price from the Stop Loss has been activated.

Trading Platform Example

Here you can see trading platform example where the price has been changed on the Stop Loss level to be in profit, but when the slippage happened the trade has closed with different price.

This is bad because you cannot rely on Stop Loss level when news are publised. And the broker should react on the first price leve after Stop Loss and not on the 4th price.

If the reaction was on the 1st price after Stop Loss level the loss on the trade would be less.

Broker Response on the Slippage Event

Here is a response from the broker on the slippage where they explain that Stop Loss is not 100% accurate when the slippage happens.

Slippage happens when there are no traders on the opposite side to take your trade. So the server looks for the next trader on the next price available.

And that price can be significantly different from the Stop loss you have set.
But, in case if your Take Profit should be activated I am sure the broker would close trade without slippage in your favor :).

Conclusion

We as a traders need to pay attention to this and select better broker or pay attention to the news on the market.

Avoiding them is the easier step to be profitable and to avoid slippage on the markets.