Many investors know that, in the foreign exchange market, it is easy to profit, loss easier, there are many reasons leading to the loss of foreign investment, sometimes with the investor's own trading habits or strategy, but it also sometimes be caused due to some objective What, for example, investors often fear of "slippage", Xiao Bian today ATFX focus on generating foreign exchange to explain the cause slippage.
First, foreign exchange Slippage is what
Forex Slippage means during the transaction, the customer places the specified transaction price and the actual transaction price there is a big difference phenomenon. Each trader will encounter slippage, whether they are trading stocks, forex or futures.
Assuming that customers see on the platform offer EURUSD is 1.2000, and the market at this price acceptable trading volume is 500 million US dollars, if the order volume of 600 million dollars client, how to do it? Which 5 million 1.3000 dollars will deal with the remaining 100 million dollars will be one of the following price of the transaction, may be 1.2001 or higher prices.
Second, how slippery spot foreign exchange generated
a market price fault
slippage us the example above is actually a market price resulting from faults. Under normal circumstances, adequate liquidity, market quotations are continuous, but volatility in the stock market or directly out of the emergence of large time, there will be price faults.
2, network delay
general, foreign exchange trading banks provide quotes to traders, dealers provide quotes to customers. When customers do business, orders arrive traders server and then forwarded to the banking system, and traded in the bank, and in the transmission process, tend to have a relatively slight delay, usually could not see, but once encountered severe fluctuations in the market, if the server process, however, a delay occurs, slippage is generated.
3, the normality of the server MT4
MT4 platform is the mainstream of the international foreign exchange trading operation, if it is a regular MT4 software, brokers will be the maximum extent possible to ensure the smooth platform, but if investors are inadvertently selected the informal traders, it is easy because of non-genuine MT4 caused by slippage.
And that 's what ATFX small series of foreign exchange for the cause slippage? How to avoid forex slippage? All the answers. I hope investors can find a regular platform for investment, to minimize losses caused by slippage.
