CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. SUPPORT TRY DEMO LAUNCH PLATFORM OPEN ACCOUNT TRADING MARKETS KNOWLEDGE INSIGHTS CLIENTS ABOUT FXCM INSTITUTIONAL About FXCM Global Broker Execution Transparency Liquidity Providers Awards and Accolades International Offices/Sites Regulation Client Funds FXCM Slippage Statistics An FXCM price improvement (positive slippage) occurs when your order executes at a more favorable price than the price you request. The opposite of a price improvement is negative slippage, when your order executes at a less favorable price. With FXCM's execution model, both price improvements and negative slippage are possible, as the statistics below show. Find out in this article which order types and market conditions could potentially put you in the most likely situation to receive either a price improvement or negative slippage.1 SLIPPAGE BY MONTH MONTHLY STATS STATS BY ORDER SIZE MARKET ORDERS BY SIZE ORDER SIZE LIMIT ORDERS MARGIN CALLS RESTING LIMIT ORDER MARKET ORDERS ENTRY ORDERS Highlights 23.77% of all stop, limit, 'at market', and entry orders received positive slippage 12.72% of all stop, limit, 'at market', and entry orders received negative slippage 66.71% of all limit and limit entry orders received positive slippage 54.06% of all stop and stop entry orders received negative slippage These highlights come from orders that executed through FXCM Group from 1 January, 2021 to 30 September, 2021. Data excludes certain types of non-direct clients.2 As you can see, with FXCM, positive slippage occurs as frequently as negative slippage. We believe that this reflects positively on our forex execution model, which aims to provide fair and transparent execution. TABLE 1.1 POSITIVE AND NEGATIVE SLIPPAGE BY MONTH Slippage can occur for many reasons, but price volatility is often the largest contributor. Typically, as price volatility increases, slippage (both positive and negative) occurs more frequently; as price volatility decreases, slippage occurs less frequently. This is, for example, why traders typically see more slippage around news events. DATE ORDERS PLACED NO SLIPPAGE PRICE IMPROVEMENT NEGATIVE SLIPPAGE NO SLIPPAGE % PRICE IMPROVEMENT % NEGATIVE SLIPPAGE % Jan. 21 6,954,920 4,319,539 1,725,932 909,449 62.11% 24.82% 13.08% Feb. 21 6,619,320 4,236,019 1,558,731 824,570 63.99% 23.55% 12.46% Mar. 21 7,767,079 4,870,770 1,909,186 987,123 62.71% 24.58% 12.71% Apr. 21 5,584,302 3,753,099 1,180,790 650,413 67.21% 21.14% 11.65% May. 21 5,228,180 3,252,234 1,288,350 687,596 62.21% 24.64% 13.15% Jun. 21 5,100,828 3,292,916 1,167,273 640,639 64.56% 22.88% 12.56% Jul. 21 5,085,551 3,136,927 1,271,488 677,136 61.68% 25.00% 13.31% Aug. 21 4,698,056 3,024,487 1,082,961 590,608 64.38% 23.05% 12.57% Sep. 21 5,209,731 3,298,981 1,233,252 677,498 63.32% 23.67% 13.00% Total 52,247,967 33,184,972 12,417,963 6,645,032 63.51% 23.77% 12.72% TABLE 1.2 POSITIVE AND NEGATIVE SLIPPAGE BY ORDER TYPE ORDER TYPE ORDERS PLACED NO SLIPPAGE PRICE IMPROVEMENT NEGATIVE SLIPPAGE NO SLIPPAGE % PRICE IMPROVEMENT % NEGATIVE SLIPPAGE % Close Market 13,600,458 9,217,807 3,132,756 1,249,895 67.78% 23.03% 9.19% Limit 2,447,374 814,623 1,632,751 0 33.29% 66.71% 0.00% Limit Entry 1,948,767 648,718 1,300,049 0 33.29% 66.71% 0.00% Margin Call 1,421,798 839,471 269,864 312,463 59.04% 18.98% 21.98% Open Market 23,547,795 16,749,457 4,654,630 2,143,708 71.13% 19.77% 9.10% Stop 3,393,033 869,128 301,933 2,221,972 25.62% 8.90% 65.49% Stop Entry 1,003,317 306,498 85,751 611,068 30.55% 8.55% 60.90% Other 4,885,425 3,739,270 1,040,229 105,926 76.54% 21.29% 2.17% Total 52,247,967 33,184,972 12,417,963 6,645,032 63.51% 23.77% 12.72% Total orders in the table above is comprised of only the order types listed. Definition of Order Types TABLE 2.1 MARKET ORDERS BY ORDER SIZE Close Market Order, Open Market Order, Open Order, Close Range, Open Range, Close Order ORDER SIZE ORDERS PLACED NO SLIPPAGE PRICE IMPROVEMENT NEGATIVE SLIPPAGE NO SLIPPAGE % PRICE IMPROVEMENT % NEGATIVE SLIPPAGE % < 0.5 37,246,848 26,115,227 7,778,375 3,353,246 70.11% 20.88% 9.00% 0.5 - 0.9 172,007 129,818 22,797 19,392 75.47% 13.25% 11.27% 1.0 - 1.9 91,270 64,442 8,334 18,494 70.61% 9.13% 20.26% 2.0 - 2.9 21,697 12,128 1,486 8,083 55.90% 6.85% 37.25% 3.0 - 3.9 6,483 1,877 655 3,951 28.95% 10.10% 60.94% 4.0 - 4.9 2,585 1,035 314 1,236 40.04% 12.15% 47.81% 5.0 - 9.9 10,767 2,907 1,773 6,087 27.00% 16.47% 56.53% 10 + 1,658 549 234 875 33.11% 14.11% 52.77% Total 37,553,315 26,327,983 7,813,968 3,411,364 70.11% 20.81% 9.08% TABLE 2.2 LIMIT ORDERS BY ORDER SIZE Immediately Executed Limit: Close Limit, Open Limit ORDER SIZE ORDERS PLACED NO SLIPPAGE PRICE IMPROVEMENT NEGATIVE SLIPPAGE NO SLIPPAGE % PRICE IMPROVEMENT % NEGATIVE SLIPPAGE % < 0.5 4,225,073 3,259,129 965,944 0 77.14% 22.86% 0.00% 0.5 - 0.9 55,255 34,172 21,083 0 61.84% 38.16% 0.00% 1.0 - 1.9 24,310 14,346 9,964 0 59.01% 40.99% 0.00% 2.0 - 2.9 1,801 1,511 290 0 83.90% 16.10% 0.00% 3.0 - 3.9 1,244 1,092 152 0 87.78% 12.22% 0.00% 4.0 - 4.9 361 326 35 0 90.30% 9.70% 0.00% 5.0 - 9.9 3,258 3,039 219 0 93.28% 6.72% 0.00% 10 + 0 0 0 0 0.00% 0.00% 0.00% Total 4,311,302 3,313,615 997,687 0 76.86% 23.14% 0.00% TABLE 2.3 MARGIN CALLS AND STOP ORDERS Stop and Margin Calls: Stop, Stop Entry, Trailing Stop, Trailing Stop Entry, Margin Call ORDER SIZE ORDERS PLACED NO SLIPPAGE PRICE IMPROVEMENT NEGATIVE SLIPPAGE NO SLIPPAGE % PRICE IMPROVEMENT % NEGATIVE SLIPPAGE % < 0.5 5,927,846 2,040,928 669,068 3,217,850 34.43% 11.29% 54.28% 0.5 - 0.9 20,755 8,101 2,617 10,037 39.03% 12.61% 48.36% 1.0 - 1.9 6,728 2,376 859 3,493 35.32% 12.77% 51.92% 2.0 - 2.9 1,566 376 152 1,038 24.01% 9.71% 66.28% 3.0 - 3.9 491 73 55 363 14.87% 11.20% 73.93% 4.0 - 4.9 150 25 12 113 16.67% 8.00% 75.33% 5.0 - 9.9 252 49 24 179 19.44% 9.52% 71.03% 10 + 23 3 7 13 13.04% 30.43% 56.52% Total 5,957,811 2,051,931 672,794 3,233,086 34.44% 11.29% 54.27% TABLE 2.4 RESTING LIMIT ORDERS Resting Limit Orders: Limit, Trailing Limit Entry, Limit Entry ORDER SIZE ORDERS PLACED NO SLIPPAGE PRICE IMPROVEMENT NEGATIVE SLIPPAGE NO SLIPPAGE % PRICE IMPROVEMENT % NEGATIVE SLIPPAGE % < 0.5 4,377,913 1,456,622 2,921,291 0 33.27% 66.73% 0.00% 0.5 - 0.9 12,131 4,448 7,683 0 36.67% 63.33% 0.00% 1.0 - 1.9 3,853 1,689 2,164 0 43.84% 56.16% 0.00% 2.0 - 2.9 1,038 366 672 0 35.26% 64.74% 0.00% 3.0 - 3.9 472 95 377 0 20.13% 79.87% 0.00% 4.0 - 4.9 437 135 302 0 30.89% 69.11% 0.00% 5.0 - 9.9 442 97 345 0 21.95% 78.05% 0.00% 10 + 118 18 100 0 15.25% 84.75% 0.00% Total 4,396,404 1,463,470 2,932,934 0 33.29% 66.71% 0.00% The above data comes from various order types that executed through FXCM Group from 1 January, 2021 to 30 September, 2021. Data excludes certain types of non-direct clients.2 Order size is calculated per the notional value of the order and displayed in MM USD. Limit and limit entry orders will only execute at the requested price or better and cannot receive negative slippage. Any negative slippage on a limit or limit entry order is an error and clients are eligible to receive trade adjustments in the event that these errors occur. Price improvements are subject to available liquidity. Additional Highlights Based on data gathered from orders executed through FXCM Group from 1 January, 2021 to 30 September, 2021, we have found the following to be true: Limit and limit entry orders are most likely to receive positive slippage. Stop and stop entry orders are most likely to receive negative slippage. 'Market range' market orders can help to prevent negative slippage. EXECUTION CERTAINTY Traders typically use order types that offer execution certainty when they want to ensure entry into the market. PRICE CERTAINTY Trader typically use order types that offer price certainty when they want to ensure that their orders are only filled if a particular price (or price range) is satisfied. Selecting Order Types There are several order types to choose from when trading forex. Each one is designed to address a specific trading need. Some order types are better suited for times when price volatility is high; some when it is low. Some order types are better suited for use around news events; some are more suitable to use when you hold positions open over the weekend. The following information regarding order types may be helpful when deciding which order type to use. Market Orders A market order enters or exits a position immediately at the best available price.3 It is the most frequently used order type with FXCM. Slippage Characteristics: Market orders can receive positive slippage and negative slippage. A 'market range' market order provides price certainty but it does not provide execution certainty. An 'at market' market order provides execution certainty but it does not provide price certainty. At Market and Market Range: FXCM market orders include two order types: 'at market' and 'market range'. Selecting 'at market' instructs the order to fill at the market price. This could be the price requested, a better price, or a worse price depending on market conditions. The executed price is determined primarily by price volatility at the time the order executes. Selecting 'market range' instructs the order to execute immediately only if the best available price is within a defined range of prices. If the only available price is outside of the defined range, the order will not execute. This order type guarantees price certainty but it does not guarantee execution certainty. THE TAKEAWAY Market Orders are beneficial when you want to enter or exit the market now. The 'At Market' order type guarantees execution certainty but not price certainty. The 'Market Range' order type guarantees price certainty but not execution certainty. Entry Orders An entry order will only trigger for execution if the market price reaches the entry order price. Slippage Characteristics: There are two types of entry orders: stop entry orders and limit entry orders. A stop entry order can receive both positive and negative slippage. A limit entry order is designed to only receive positive slippage. Stop Entry vs. Limit Entry: An entry order is considered a 'stop' entry order when the entry order price is a less favorable price than the current market price (i.e. a higher price when you are buying and a lower price when you are selling). This order type can be filled at the requested price, a better price, or a worse price depending on market conditions. Using this order type, especially around news events or other volatile market conditions, can subject you to negative slippage. An entry order is considered a 'limit' entry order when the order price is a more favorable price than the current market price (i.e. a lower price if you are buying and a higher price if you are selling). This order type is designed to only fill at the requested price or better. Thus, traders gain price certainty but they do not have execution certainty when using this order type. Using a limit entry order to open trades, especially around news events or other volatile market conditions, may be a better option than using a stop entry order because negative slippage can be avoided. THE TAKEAWAY Entry orders are beneficial when you want to enter or exit the market at a future price. When trading around volatile market conditions a limit entry order can be used to open trades instead of a stop entry order if you want to potentially avoid negative slippage. Please note: limit entry orders do not provide execution certainty. Stop and Limit Orders A stop order is designed to execute at the market price. This could be the price requested, a better price, or a worse price depending on market conditions. It was designed this way because a stop order is most frequently used to exit a trade from a losing position. A stop order provides execution certainty but it does not provide price certainty, so negative slippage is possible. A limit order is designed to execute at a specified price or better. For many traders, the limit order price is set at their profit target. Limit orders provide price certainty but they do not provide execution certainty because they are designed to only fill at the limit price or better. Slippage Characteristics: A stop order can receive both positive and negative slippage. A limit order is designed to receive positive slippage but not negative slippage. THE TAKEAWAY Stop and limit orders are beneficial when you want to exit the market at a future price. When trading around volatile market conditions a limit order can be used to close trades to provide price certainty. DISCLOSURE 1 The article does not in any way attempt to represent that FXCM maintains a particular capacity or performance level. The figures in this article are provided for information purposes only, and are not intended for trading purposes or advice. FXCM is not liable for any information errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. Past results are not indicative of future performance. 2 Non-direct clients may include clients of certain intermediaries. 3 Best Pricing: FXCM aims to provide clients with the best pricing available and to get all orders filled at the requested rate. However, there are times when, due to an increase in volatility or volume, orders may be subject to slippage. 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