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Q: What is "Slippage"?

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What is "Slippage"?

FXClub.com Tip: If you're looking for an introduction to currency trading, it's best to know all the jargon attached. Slippage is one such phenomenon in currency trading. Slippage occurs in Forex trading when an actual trade goes through at a worse exchange rate than had been shown by the broker. It is argued that some slippage is inevitable in this fast moving market, but others argue that some brokers make money through slippage. If a significant event occurs, such as the election of a new official, slippage often occurs as a natural result of Forex market volatility.

Slippage most often takes place on Sunday nights during market openings when rates of opening differ from rates of closing.

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