Every time there is a major news event or important data release, the foreign exchange market will experience ups and downs, and the probability of a sliding point increases due to severe market fluctuations. The emergence of sliding points in trading has become a major concern for many investors, and how to solve foreign exchange sliding points has also become a concern for everyone.
I believe that for every foreign exchange trader, every major market fluctuation in the market is a great opportunity that cannot be missed. However, after investors complete the transaction, they sometimes encounter slippage points and suffer unnecessary large losses. I believe every investor will be very angry in this situation. So what if I encounter a sliding point? How to avoid slipping points? Below is a brief explanation for you.
Regarding the issue of sliding points. It is an inevitable phenomenon to use the market price order to enter and exit the market. Most friends will understand this as a sliding point. In fact, it is a problem of bank quotation. The gap in quotation cannot meet all tradersEspecially for friends who use the "floating point difference" platform, as long as the orders are traded according to the actual market price, even if the sliding point is understandable.
Every time there is a major news event or important data release, the foreign exchange market will experience ups and downs, and the probability of sliding points increases due to the drastic fluctuations in the market. The occurrence of sliding points in trading has become a major concern for many investors.When may a transaction order slip? Have you ever checked when your order, stop loss, and limit are usually triggered during the day?If the execution is triggered during high-risk news releases, it is more likely to encounter slippage points due to the rapid changes in market conditions and relatively insufficient liquidity (most financial institutions avoid closing documents during news releases).Check if your order was triggered during the press release period, or during the opening and closing periods of each trading day, when liquidity is relatively scarce. Try to avoid the time periods mentioned above that may lead to slippery trading.
So the question arises, can the sliding point be controlled?
1、 The sliding point of the price limit order is most commonly seen in the market price list and may appear at both entry and exit. To avoid bidirectional sliding points, traders also choose limit orders. Limit orders are only sold at designated prices or better. If a limit order is used and the optimal tradable price is still less than our limit price, the transaction will remain in a waiting mode and will not be triggered. Sometimes a limit order means losing potential profit opportunities, but it also allows you to avoid excessive investment in trading.
2、 The market scope command allows you to set an acceptable price range (in basis points) for reaching a transaction. If your transaction cannot be reached at the price within the selected range, the transaction will be cancelled and the position will not be opened. Therefore, such commands limit the scale of the sliding points you may face. The wider the range you set, the greater the likelihood of a transaction. From this perspective, there is no best way to avoid sliding points, so it is particularly important for us to choose a trading platform with stable servers and strong liquidity. Under normal circumstances, the greater the liquidity that platform providers connect with, the less likely they are to experience slippage points. The more advanced the server technology of platform providers, the further they can avoid slippage points caused by network latency.
If you encounter a slippage on a foreign exchange trading platform, you can take the following measures:
1. Confirm if the sliding point exceeds the normal range: When the market fluctuates violently or has low liquidity, the sliding point is very normal. Therefore, it is necessary to first confirm whether the sliding point has exceeded the normal range.
2. Contact the broker: If you think the slip point is unreasonable or too large, you can solve the problem by contacting the broker. Please provide detailed information about the order and slip points to help them understand the situation.
3. Seek third-party mediation: If the problem cannot be resolved by contacting the broker, consider seeking third-party mediation. Some regulatory agencies provide dispute resolution services, and you can seek help from them.
4. Reduce risk: To reduce the impact of slip points on your trading, you can consider using tools such as stop loss orders and limit orders to manage risk. In addition, it is also possible to try to avoid trading during periods of intense market volatility or low liquidity.
【 EBC Platform Risk Reminder and Disclaimer 】: There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice.