What is sliding point? Why do sliding points occur in foreign exchange transactions?

Trade slip point/


The sliding point is a small shift in the opening price due to a lack of liquidity (when it has been acquired by other traders' orders). It can also happen in the market gap.


It is important to understand that foreign exchange trading platforms cannot guarantee that your order will be closed at the price you requested; their system will automatically select a more favorable price from another liquidity provider.


So in some news release periods, the price you ask for will probably not have liquidity. For example, you want to open 5 orders of euro to us dollar at 1.30000. Now, in this case, we can see the following Liquidity:


In this case, your order will be closed with provider 2 because it has the best price and enough liquidity to meet your requirements. The transaction price is 1.30005, which is 0.5 points lower than the price you want.


[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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