If you have been trading Forex for a while, you probably encounter a problem called Forex Slippage, which is a phenomenon that makes many traders feel frustrated because the price you want to enter does not match the actual price received.

It occurs because the market moves rapidly; prices change every second. You click to buy at 1.3650, but when the order is sent, the price might be 1.3660 or 1.3640. That is Slippage.

There are three types: No Slippage (price matches the desired), Positive Slippage (better price than expected), and Negative Slippage (worse price than expected). Most traders fear negative Slippage because it eats into profits.

What you need to know is that Forex Slippage is a natural phenomenon in the market, not a scam by brokers. All ECN accounts experience it. If your account is connected to the Interbank level, it’s unavoidable. But that’s not a problem because it can be managed.

Ways to reduce Slippage:

First, choose a reputable broker. If Slippage occurs more than 10 times out of every 100 trades or more frequently than other brokers, try switching brokers. Select one regulated by ASIC, FCA, CIMA, or FSC.

Second, take care of your internet connection. Use a wired connection instead of Wi-Fi. Close unnecessary programs. If you do Scalping, pay special attention to this.

Third, set your Terminal to open new orders with the maximum deviation setting. You can set a maximum Slippage. If the price exceeds the limit, the order will not execute.

Fourth, use Limit orders instead of Market orders. Some Limit orders tend to get canceled more often, but they help reduce Slippage.

Fifth, switch to a higher timeframe. If you trade on minute charts, Slippage can be severe. But if you switch to hourly or daily charts, the problem decreases significantly.

Sixth, avoid news periods. Do not trade 30-40 minutes before major news releases. Wait about 30 minutes after the news, as volatility will settle down.

Seventh, if you need to trade during news, choose news events that cause significant price movements. Forex Slippage is a problem, but if the news moves the price by 50 points, a Slippage of 15 points is still worthwhile. Calculate which news causes the most movement and trade only during those times.

Regarding currency pairs EUR/USD and USD/JPY, they have high liquidity. Under normal conditions, Slippage is less. But during major news, even major pairs can experience it.

In fact, Forex Slippage is part of the risk that traders must accept. No one can avoid it. But you can manage it to cause the least damage by choosing good brokers, setting your parameters properly, avoiding news, and switching to higher timeframes. This way, you can control the situation.