Why does foreign exchange slip? How to avoid it?

Trade slip point/

As a phenomenon in foreign exchange trading, sliding point is often an important inducement for traders to generate additional transaction costs. In fact, the sliding point is not terrible, but the terrible thing is that investors do not know how the sliding point comes from, and even acquiesce in the existence of the sliding point subjectively. So why do foreign exchange have sliding points? How to avoid sliding points in foreign exchange trading?

Sliding point caused by network delay

When this delay meets the drastic fluctuation of the market, the server processing is not timely, it will be delayed. At this time, there will be a difference between the transaction price and the price that the customer wants to close, that is, a sliding point.

Investors should try their best to improve the speed of their computer configuration and network, take all measures to find the fastest way to connect to the trading server and reduce the network delay.

Insufficient liquidity and abnormal slip point

When the market fluctuates violently or there is a large amount of direct in and out, the market may be lack of liquidity. At this time, there is a market quotation fault, which leads to a sliding point.

Choosing a formal and powerful foreign exchange platform can effectively avoid the abnormal sliding point set by the platform, and it is not easy to appear the phenomenon of insufficient liquidity. At present, Huangma foreign exchange, a foreign exchange merchant, has done a better job in this aspect in China. Its software supports the flexible hanging order transaction without sliding point, and customers and investors do not need to worry about the risk of sliding point.

Sliding point caused by large market fluctuation

When some important economic events occur, the market price is extremely easy to be affected. At this time, the market fluctuates greatly and the market changes rapidly. This means that when a trader's order is processed, the market quotation has changed, and it is easy to slide.

Investors can choose to clear their positions in advance to avoid making orders at the time when the market fluctuates greatly, which can completely avoid the sliding point brought by the market fluctuation. Of course, this may also miss quite a lot of profit opportunities, which requires investors to grasp.

[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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