I just noticed that many people still don't really understand what slippage is and how much it affects their trading. Honestly, this is one of the most important things to know if you want to do Forex well.

It happens all the time in fast-changing markets where prices go up and down every second, especially in the cryptocurrency market. The difference between the price we expect to buy or sell at and the actual price that occurs—that's slippage. It’s a phenomenon caused by the speed of the market.

For example, you intend to buy at 1.3650, but when your order is executed, the price has changed to 1.3660. That’s a worse price, called negative slippage. Sometimes the market moves in a better direction, with the price at 1.3640, which is called positive slippage, and that’s a good thing.

The truth is, we can't completely avoid it, but we can reduce it. The technique I find effective is:

First, choose a reputable broker. If slippage occurs more frequently than usual or more than 10 times out of 100 trades, you should switch. A good broker will be regulated by a trusted organization.

Second, take care of your internet connection. Use a wired connection instead of Wi-Fi. Close unnecessary programs while trading. If you’re scalping, pay more attention to this.

Third, set a maximum slippage in the terminal. New orders should have a maximum deviation set. If it exceeds the limit, the system won’t execute the trade.

Fourth, use pending limit orders instead of market orders. Sometimes, limit orders can get you better prices, but you need sufficient liquidity.

Fifth, switch to a higher timeframe. For traders who trade on minutes, slippage can be a big problem. But if you switch to hourly or daily charts, the impact is much less.

Most importantly, avoid trading during news releases. The 30-40 minutes before and after news often see very high slippage. If you must trade during news, choose highly volatile news and factor in slippage when calculating your expected profit.

High-liquidity currency pairs like EUR/USD and USD/JPY usually experience less slippage, but during very volatile markets, even these pairs can be affected.

In summary, slippage is part of the trading game. We have to accept it and learn how to manage it. Trying to completely avoid it is impossible.