Once I talked to support of one Forex broker company and they told me that slippage occurs because of nature of stop/limit orders and gave example:
If buy order was opened at 1,5000 and SL on 1,4900 and TP on 1,5100 and price goes down, SL will become active when price come to 1,4900 and then execute at first available price, sometimes few pips lower. Since TP price is higher then current price, it can be put to market immediately and wait for other side of the trade, so it can't be skipped, so no slippage can happen at TP.
It would mean that on sell order is all opposite, SL goes immediately to market since higher price is not reached and TP will became market order when lower price is reached, so slippage can't happen on SL and can happen on TP.
And that makes sense, but in reality it goes differently.
At my current broker that claims its ECN, and it is very respected in the community, I have experienced both positive and negative slippage, on SL and TP, on buy and sell orders in the way that above explanation says it is impossible.
I would like to find out how is it really done. If someone knows how are orders actually executed, can you please explain how it happen on SL, TP, sell and buy orders?
If buy order was opened at 1,5000 and SL on 1,4900 and TP on 1,5100 and price goes down, SL will become active when price come to 1,4900 and then execute at first available price, sometimes few pips lower. Since TP price is higher then current price, it can be put to market immediately and wait for other side of the trade, so it can't be skipped, so no slippage can happen at TP.
It would mean that on sell order is all opposite, SL goes immediately to market since higher price is not reached and TP will became market order when lower price is reached, so slippage can't happen on SL and can happen on TP.
And that makes sense, but in reality it goes differently.
At my current broker that claims its ECN, and it is very respected in the community, I have experienced both positive and negative slippage, on SL and TP, on buy and sell orders in the way that above explanation says it is impossible.
I would like to find out how is it really done. If someone knows how are orders actually executed, can you please explain how it happen on SL, TP, sell and buy orders?