Slippage is the difference in price between a take profit or stop order being triggered and the execution of the same. It can occur in fast or illiquid markets and comes about because stop and take profit orders are executed at the next available price in the market after they are triggered and FX prices can move significantly, even within a fraction of a second. The only way to eliminate slippage is to trade with guaranteed stop losses, however, they usually have a cost attached to them and are not as flexible as a standard stop-loss order. To reduce potential exposure to slippage, it’s best to trade in the most liquid portions of the market in terms of both choice of instrument and times of the trading day. We can also use limit orders to fix the price at which we are prepared to execute. Though of course, we have to weigh up when to use that order type and when it’s best to close a position, regardless of price.