On the sliding point in the foreign exchange market
In the foreign exchange market, the slip point refers to the deviation between the trading order and the actual trading point in the foreign exchange trading. Although the sliding point is an unavoidable phenomenon in the foreign exchange trading, there are still many investors who can not accept the sliding point, because the sliding point may damage the trading results of the traders. What are the reasons for the sliding point?
The first reason is that the transaction slip point caused by network delay. Most foreign exchange transactions are carried out through the network. Customers send transaction instructions on the terminal computer, and the transaction instructions are transmitted to the platform server for execution through the network. In the middle, if any of the local network, intermediate network nodes and platform server network has stuck or fails, the transmission of transaction instructions will be directly caused Transmission failure or delay, and in this transmission process, there is often a relatively small performance, usually not noticed in the transaction, once the market volatility is fierce, delay will occur.
The second reason is that some unhealthy platforms and unscrupulous foreign exchange dealers operate maliciously. Some irregular foreign exchange dealers use procedures to confuse traders' trading strategies, so as to make profits and increase the transaction costs of traders.
The third reason is the price jump, which means that there is no transaction in a certain price range. If the price directly skips this range, it actually causes a premium; when a major event occurs or major news is announced, the market fluctuates violently and the price appears fault, that is, the short jump phenomenon. The short jump range includes the stop loss position set by many people, At this time, although all orders will be executed, there will be a significant difference with the point you set.
Generally speaking, foreign exchange sliding point is unavoidable, and sliding point can also be divided into positive sliding point and negative sliding point. There is no regular existence of sliding point. Therefore, sliding point may bring losses to investors and may bring profits to investors. Their probability is equal. If investors want to avoid sliding point, it is better not to enter the market when the market fluctuates violently.