What is the sliding point of the basic knowledge of foreign exchange?

Trade slip point/


Sliding point generally refers to the deviation between the real trading volume price and the preset trading volume price. This kind of deviation is generally moving to the position of the unfavorable traders, causing additional damage to the trading. It is a situation that many new traders do not want to encounter, but it is the normalization of the real financial system.


Slip point, the key appears in the entry and stop loss two actual operation, not easy to appear in the profitable stage. When the price rises rapidly, investors expect to enter the market immediately and follow the sales market position to do long. As a result, many orders are congested in the long position, while the enemy side covers the plate, so it is not easy to buy short or sell many orders. Therefore, in the rapidly rising price trend, the price of long entry usually appears a significant sliding point, because the price of the previous second entry of traders has been rapidly rising. At this time, short or sold more than one of the transactions will be quickly trading volume, and the price of trading volume can be in the preset positioning point.


When there is a price sliding point, traders can accept it, but if there is a stop loss sliding point, the damage and psychological burden of traders are more serious. Stop slip point means that the real stop price does not open at the set stop positioning point, but deviates, causing the real stop strength to exceed the original set stop strength, thus increasing the loss.


In fact, in the real financial system, this kind of situation can often be seen. It is just that in many cases, the decline point is very small, with only one or two benchmark points or even less, which is ignored by investors. Sometimes the sliding point is more significant, and the preset price is five or even several 10 benchmark points away.


There are two key reasons for stop slip


1. Overnight after a week of high jump caused by the opening of new housing


When the sales market is closed, some key economic indicators or key news hot spots are announced. After the opening of a new house, the sales market must record the harm caused by this vicious event into the price quotation, so there will be a short jump in the rise or fall. If the investor's stop loss price is right in the middle of the vacancy, then the real stop loss may be shifted to the other side of the vacancy.


2. The sales market fluctuates strongly and the circulation is not enough


When key economic indicators are released or news hot spots are generated, the sales market will fluctuate strongly in a short period of time, resulting in the offset of stop loss price, especially in the case of the above original text.


[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk

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