• What is Slippage?
• What causes Slippage?
• What’s the solution to avoid slippage?

Slippage is a common factor that reduces profitability and costs traders money, but did you know that Yadix provides you with an effective solution to help avoid slippage?

What is Slippage?

Slippage is when an order is filled at a price different than the price entered on your MT4.

Slippage is the difference between the price you ordered and the price at which the order was actually executed.

As a ECN/STP broker, Yadix provides market execution within the interbank market.

Slippage can happen when there is not enough liquidity at the price requested to fill your order – as a result, the order will be filled at the next available price.

Slippage is more likely to occur when the market volatility is high, like during high impact news announcements or rollover time.

Please note that stop loss, take profit, buy/sell stop and buy/sell limit orders are conditional, and therefore can vary from the requested price.

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What causes Slippage?

Slippage can be caused by latency between the trader’s MT4 and the trade server.

Latency is the time taken for your MT4 to communicate with the server where your order is completed.

E.g. Trader is located in Singapore, and the latency between Singapore and Yadix’s London servers is 150 ms, during the 150 ms taken to send your trades to Yadix’s server the price in the market can change causing slippage.

What’s the solution to avoid slippage?

Yadix can provide you with a free VPS, a computer located at a private server in London; close to Yadix’s Equinix LD4 server this reduces your ping to the server to an average of just 2ms.

E.g. Trader is located in Singapore, but uses a Yadix VPS.

The latency is just 2 ms, reducing the time taken to execute trades by a massive 148 ms, and therefore greatly reducing the chances of latency slippage.

Find out more about Yadix’s free London VPS program in the page here.