Yes. Slippage is positive when your execution price is more favourable than expected and negative when it is less favourable.
Whether a price is more favourable depends on whether your order is buying or selling.
What is positive slippage?
Positive slippage means your order executes at a better price than expected:
- Buy order: A lower execution price.
- Sell order: A higher execution price.
What is negative slippage?
Negative slippage means your order executes at a worse price than expected:
- Buy order: A higher execution price.
- Sell order: A lower execution price.
Example of negative slippage on a Stop Loss
Suppose you hold a Buy position with a Stop Loss at 1.1000.
If the market falls quickly and the next available execution price is 1.0995, your position may close at that price. Because closing a Buy position involves selling, the lower price is less favourable.
The difference is 0.0005, equivalent to 5 pips for a forex pair where one pip is 0.0001.
Slippage does not necessarily indicate a platform malfunction. It can occur when prices move rapidly or insufficient liquidity is available at the expected price.
Risk Warning
Trading Contracts for Difference ("CFDs") and other leveraged financial derivatives involve a high degree of risk and may not be suitable for all investors. Leverage can magnify both gains and losses, and you may lose all of your invested capital. You should ensure that you fully understand the risks involved before trading.
The information provided on this website is for general information purposes only and does not constitute investment advice, a recommendation or an offer or solicitation to buy or sell any financial instrument.