Let us say the price of the AUD/USD is 0.9010. After analysing the market, you speculate that it is on an upward trend and trade one standard lot of trade volume at the current price of AUD/USD 0.9050, expecting to execute at the same price of 0.9050.

The market follows the trend but goes past your execution price and up to 0.9060 very quickly – within a second. Because your expected price of 0.9050 is not available in the market, you are offered the next best available price. For the sake of the example, that price is 0.9045. In this case, you would experience positive slippage:

0.9050 – 0.9045 = 0.0005, or +5 pips.

On the other hand, let us say your trade was executed at 0.9055. You would then experience negative slippage:

0.9050 – 0.9055 = -0.0005, or -5 pips.

It is important to note that slippage can occur in all types of requested orders, including Stop Loss, Take Profit, Buy/Sell Stops and Buy/Sell Limit Orders. As VT Markets uses market execution, we cannot guarantee such orders.

We operate under Market Execution and for this reason, we are unable to fill a forex order that no longer exists. If your requested price is no longer available, your order will be filled by our FX liquidity providers at the going market rate.