Slippage during news trading

[Zemjay]

When trading events like NFP or CPI, slippage is almost unavoidable. I’ve seen some brokers discuss execution and liquidity openly. How much of slippage is broker-related vs market liquidity?

 

[Aminabutt]

Slippage during NFP/CPI is mostly about raw market liquidity drying up and spreads widening fast, brokers do play a role in execution quality, but even with a good setup, some slippage is just unavoidable in those conditions.

 

[Alex jhonas]

A lot comes down to market liquidity, brokers can minimize it with good execution, but during big events some slippage is just part of the game.

 

[Adan Jordan]

From what I’ve experienced, a lot of it comes down to market conditions during those events. Liquidity just disappears for a moment and price moves too fast. That said, execution quality still matters, some brokers handle it better than others.

 

[Rick Novak]

During big releases, the market just doesn’t behave normally, so some level of slippage is kind of expected.

Still, the way it’s handled can vary a lot depending on the broker’s execution.

 

[holycow]

A lot comes down to market liquidity, brokers can minimize it with good execution, but during big events some slippage is just part of the game.

When dealing with the slippage and other factors we need to factor them in while calculating our entry point so we can enter the market early and protect ourselves from not entring the trades by extra slippage caused during volatility.

 

[sakaida1125]

in that exact first ms of a data drop, top-of-book liquidity basically evaporates. idc how fancy your broker's servers are, market orders will always get dragged down to the next available price depth. simple system mechanics.
nowadays i just treat that physical limit as a tax for trading the chaos. avoid chasing with market orders like the plague and widen the tolerance on your limit orders well in advance.