Slippage in forex occurs when your trade is executed at a different price than expected. This usually happens during high volatility or low liquidity. While small, it can affect long-term profitability, especially in strategies like scalping.
Understanding Slippage in Forex
Slippage means that the market price changes between the moment you place a trade and when it’s executed. For example, you may plan to buy EUR/USD at 1.1000, but it gets executed at 1.1003 due to price movement. This slight price shift can be positive or negative depending on market direction.
You can learn more about quick strategies like this in our comparison of Scalping vs Swing Trading.
What Causes Slippage in Forex?
Several factors trigger slippage:
- High market volatility during news releases
- Low liquidity during off-market hours
- Slow execution by your broker
- Network delays on your platform or server
Using a Forex VPS can help minimize execution delays. Learn more about this in What Is a Forex VPS and Why Do Traders Use It?
How to Avoid or Reduce Slippage
You can’t eliminate slippage entirely, but you can reduce it:
1. Choose a Reliable Forex Broker
A fast and regulated broker reduces the chances of poor execution. Check out our full guide on How to Choose the Best Forex Broker.
2. Use Expert Advisors (EAs) for Speed
Automated trading systems can react faster than humans. You can get started with these tools by reading our Best Forex Expert Advisors for 2025.
3. Trade During High Liquidity Hours
Slippage is less common when major markets overlap. Avoid low-volume times like late Fridays.
4. Use Limit Orders Instead of Market Orders
Limit orders let you define your price, reducing unexpected fills.
Use Advanced Tools to Stay Ahead
Many custom EAs and indicators are built to work around slippage-sensitive strategies. Check out our recommendations in Top Forex EAs You Can Buy for Under $10 and Custom Forex Indicators.
Also, backtest your EA performance to understand how slippage impacts strategy. See our guide on How to Backtest a Forex Trading Strategy.
Final Thoughts
Slippage in forex is common but manageable. Use smart tools, choose reliable brokers, and automate where needed to reduce its impact. For tools, education, and expert advisors, trust GregForex to help you trade smarter.
