Results 1 to 3 of 3
slippage in futures
Hello,
Im very new to futures and will like to know the type of slippage you get when trading futures, i come from the forex world where i was trying to scalp big spikes (very fast moves) during news which was kind of hard especially when dealing with slippage, platform freezing etc...
Those are the main reasons that made me change my mind and look in the direction of futures so i hope everything will be alright here since i dont plan to go back to forex.
Thanks.
Hello,
Im very new to futures and will like to know the type of slippage you get when trading futures, i come from the forex world where i was trying to scalp big spikes (very fast moves) during news which was kind of hard especially when dealing with slippage, platform freezing etc...
Those are the main reasons that made me change my mind and look in the direction of futures so i hope everything will be alright here since i dont plan to go back to forex.
Thanks.
hi metta87
If you're the type of trader that is active during news and data releases you may find that slippage may affect your trades, depending on the instrument.
I have seen 20+ ticks slippage in EUR/USD before NFP is released. Having said that, we're talking about NFP which is arguably the biggest regular trading event of the month.
Slippage tends to occur during news because the liquidity 'dries-up'. Nobody wants to be caught off side before knowing how good/bad the data release is, so they remove their orders from the market. This, in the case of certain instruments can exacerbate moves.
Usually though I'd say if you trade very liquid instruments such as US Treasuries, even during news releases slippage is not really an issue, unless there are calamity-type events such as 'Brexit' (if you've followed European news) during which GBP/USD kept going up and down like a yo-yo.
Hope it helps.
Hello,
Im very new to futures and will like to know the type of slippage you get when trading futures, i come from the forex world where i was trying to scalp big spikes (very fast moves) during news which was kind of hard especially when dealing with slippage, platform freezing etc...
Those are the main reasons that made me change my mind and look in the direction of futures so i hope everything will be alright here since i dont plan to go back to forex.
Thanks.
hi metta87
If you're the type of trader that is active during news and data releases you may find that slippage may affect your trades, depending on the instrument.
I have seen 20+ ticks slippage in EUR/USD before NFP is released. Having said that, we're talking about NFP which is arguably the biggest regular trading event of the month.
Slippage tends to occur during news because the liquidity 'dries-up'. Nobody wants to be caught off side before knowing how good/bad the data release is, so they remove their orders from the market. This, in the case of certain instruments can exacerbate moves.
Usually though I'd say if you trade very liquid instruments such as US Treasuries, even during news releases slippage is not really an issue, unless there are calamity-type events such as 'Brexit' (if you've followed European news) during which GBP/USD kept going up and down like a yo-yo.
Hope it helps.
