How Can You Benefit from Understanding Slippage at Tradiso?
At Tradiso, we pride ourselves on offering our clients raw spreads, ensuring competitive pricing for their trades. However, it’s important to understand that slippage can occur, particularly during volatile market conditions or when executing large lot-size orders. Slippage refers to the difference between the expected price of a trade and the actual price at which it is executed.
Since all trading orders are typically executed as market orders, they are filled at the best available price in real-time. During news events such as economic announcements, interest rate changes, or geopolitical developments, prices can change rapidly. This volatility can lead to slippage, especially with larger orders, as market conditions fluctuate significantly in response to new information.
By understanding slippage, traders can develop more informed strategies, allowing them to anticipate potential variations in execution prices. This knowledge empowers you to manage risk effectively and take advantage of market opportunities with greater confidence. Embracing this understanding can enhance your overall trading experience and improve your decision-making process.