Acceptable Slippage on stop loss by Brokers ?

p1p1n

Private
Messages
24
Hello,

I had slippage on my stop loss execution of about 50+ pips on USD/JPY buy order during Nonfarm Employment Change report.

Just wondering how much of slippage is acceptable with major pairs during news events, so that next time i am better prepared if things go wrong.

thanks
 

Pharaoh

Colonel
Messages
19,892
It really depends on how big the movement is on the news. If the spike is 25 pips, I'd be furious if I got 20 pips slippage. If the spike is 100 pips, I'd be very happy with 20 pips slippage.

NFP is the biggest potential market mover each month. If the deviation is large, the markets will go wild.
 

Whitesnake

Corporal
Messages
428
I had this slippage problem twice during the major news release, once a 25 pips slippage and the other time my pending order was triggered with 30 pips slippage.
 

Rambo35

Corporal
Messages
280
I have never had an issue with slippage to be honest, even during market moving events. My broker gets my order to the market as I enter it. I am not accepting any slippage and so far did not have to deal with it.
 

p1p1n

Private
Messages
24
Thanks very much for taking your time for the replies.

on 02/08/13, at the release of Non-Farm Payrolls poor figure of 162k actual vs 184k expected, my mt4 shows red candle on 1Minute frame of USD/JPY, please find the attachment below.

If am not wrong then around 125 pip movement on news release.

So what amount of slippage would be fair ?
 

Attachments

p1p1n

Private
Messages
24
I have never had an issue with slippage to be honest, even during market moving events. My broker gets my order to the market as I enter it. I am not accepting any slippage and so far did not have to deal with it.
How does your broker does that because as far as i know most major brokers emphasize slippage in terms and conditions. or Is there anything i need to specify or modify when i make a trade in Mt4/5 ?
 

Pharaoh

Colonel
Messages
19,892
If am not wrong then around 125 pip movement on news release.

So what amount of slippage would be fair ?
125.9 pips if I didn't slip a digit on my calculator.

50 is on the high side for such an event. It sounds like your broker is a bit lacking in the liquidity department. If this is a typical slippage for an event of that size, I recommend considering other brokers.


Personally, I'd be VERY wary of any broker with no slippage around news. The real market has real slippage. You could use the US Federal Reserve Banks as your LP and you'd still get some slippage. Brokers are NOT in the habit of giving away free money out of the kindness of their hearts. They'll either nullify the trades later (under 1 of 3 or 4 standard excuses) or else find some other way to make up the difference.

That being said, deeper liquidity usually should result in lower slippage.
 

undertaker

Sergeant
Messages
226
Just avoid Exness and IronFX, through my local forex forums, almost trader posted these 2 brokers have high slippage.
 
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