Slippage Explained: Why Order Prices Change (2026)

What slippage and requotes actually mean

Slippage is the difference between the price you expected and the price your order actually receives. This can happen in forex, stocks, commodities, or crypto CFDs whenever the market moves before the broker completes your order. In fast markets, the quoted price may no longer be available by the time your trade reaches the market.

Slippage is not always negative. Positive slippage means you get a better price than expected. Negative slippage means you get a worse one. In most cases, traders focus on negative slippage because it can increase trading costs and reduce strategy precision.

A requote is slightly different. It usually means the original price is no longer available, and the broker offers you a new price to accept or reject. Requotes are more often associated with instant execution models, while market execution tends to fill the order at the best available price instead.

If you are unsure how different instructions behave in volatile markets, our guide to order types explained can help clarify why market orders typically face more price movement than pending orders.

Why your order price changes

Price slippage usually happens for one of five reasons.

• High volatility: News releases, central bank decisions, and sudden geopolitical events may cause prices to jump between available levels.
• Low liquidity: If there are not enough buyers or sellers at your requested price, the order may fill at the next available level.
• Large order size: Bigger trades may consume more available liquidity, especially outside peak market hours.
• Execution speed: A broker with slower routing or heavier platform latency may expose you to larger price changes.
• Order type: Market orders prioritize execution, not price certainty. Limit orders prioritize price, but they may not get filled.

In forex, slippage often becomes more noticeable around major data releases such as U.S. nonfarm payrolls or interest rate decisions. It may also happen during thinner trading periods, such as market open, rollover, or holiday sessions. If you are still learning the building blocks of trade pricing, our guide to pips spreads lots gives useful context for measuring how much a fill actually deviated.

For retail traders, the practical point is simple: even a broker advertising tight spreads may still produce a different all-in trading cost once slippage and execution quality are considered.

Execution models and broker differences

Broker setup matters. Some platforms emphasize simple dealing-desk style execution, while others focus on direct market-style routing or ECN-like pricing structures. That does not automatically make one model good and another bad, but it does affect how slippage and requotes may show up in live trading.

For example, Pepperstone offers spreads from 0.0 pips on its Razor account and supports MT4, MT5, cTrader, and TradingView. Its product data highlights fast execution, advanced charting, and copy trading, with DFSA, FCA, ASIC, CySEC, and BaFin regulation. For traders who care about execution speed and flexible platform access, that profile may be relevant.

Exness also lists spreads from 0.0 pips on Raw accounts, with a $3.50 per lot commission, plus MT4, MT5, and Exness Terminal. It is popular in the MENA region and highlights instant withdrawals, though its regulatory profile includes FCA, CySEC, and FSA Seychelles. That mixed regulatory setup means traders should check which entity they are actually opening under.

Interactive Brokers is structured differently from many CFD-first brokers. It offers access to 150+ markets, professional-grade tools, and spreads from 0.25 pips, with DFSA, SEC, FCA, and SFC regulation. For more experienced traders, that may support more precise execution analysis, but the platform can feel complex for beginners.

Capital.com, regulated by the SCA in the UAE as well as FCA, CySEC, and ASIC, offers spread-only pricing from 0.6 pips and a low $20 minimum deposit. It may appeal to newer traders who want a simpler interface, though spread-only pricing does not remove the possibility of slippage during fast moves.

If you are comparing pricing models more broadly, our broker fees comparison can help you separate headline spreads from the real-world cost of execution.

Slippage vs spreads, commissions, and market impact (the cost side)

Here’s the thing: traders often treat slippage as a broker “speed” problem, but in practice it is part of your overall transaction cost. The final result you get on a trade can reflect multiple forms of friction happening at the same time, including slippage, spread changes, commissions, and market impact from your order size relative to available liquidity.

Spreads are the difference between bid and ask. They are visible before you place the trade. Commissions are explicit charges (common on raw spread accounts) and are usually predictable. Slippage is different because it is about execution at the moment your order hits the market. It can change trade to trade, even if the quoted spread looks stable on your screen.

What many people overlook is that spreads can widen and slippage can occur at the same time, but they are not the same thing. Spread widening is a change in the prices being quoted. Slippage is the gap between your expected price and the actual fill you receive. If a market becomes thin for a few seconds around news, you might see a wider spread, and you might also get filled at a worse level than you expected if the price moves between the time you click and the time the order executes.

Market impact is another layer. If your order is large enough to take multiple levels of available liquidity, the broker may have to fill you across several prices. You might see that as slippage, but the underlying cause is not only platform latency. It is the reality that there may not be enough liquidity at the top of book to fill your entire size at one price.

Think of it this way: the “all-in cost” of a market order can look like this: the spread you paid, plus any commission, plus any negative slippage (minus any positive slippage). That is why two brokers with similar advertised spreads may still feel very different in live conditions.

A simple example helps. Suppose you see EUR/USD at 1.10000 and you send a market buy. By the time the order reaches the market, the best available ask could be 1.10005, so you get filled there instead. That 0.00005 difference is 0.5 pips of negative slippage on entry. If you later close with a market sell expecting 1.10020 but you fill at 1.10015, you took another 0.5 pips of negative slippage on exit. None of this guarantees that you will experience slippage every time, but it shows how small differences can appear on both sides of the trade, especially in fast markets or when liquidity is thinner.

Broker examples for slippage-conscious traders

No regulated broker can promise zero slippage in all market conditions. What you can look for instead is a combination of transparent pricing, credible regulation, stable technology, and platform features that help you manage risk.

Pepperstone may stand out for active traders because it combines no minimum deposit, multi-platform support, and very low advertised spread entry points, though Razor users should account for the $7 per lot commission. AvaTrade may appeal to cautious traders who want ADGM FSRA regulation, AED account support, and risk-management tools such as AvaProtect, but inactivity fees after three months are a real consideration.

Plus500 has a simple interface and guaranteed stop-loss availability on certain products, with DFSA regulation in the UAE context. That may help some beginners manage downside, although overnight funding fees still matter for positions held longer. XTB offers spreads from 0.1 pips, DFSA regulation, extensive education, and 0% commission on real stocks up to volume limits, which may suit traders who value learning resources alongside execution quality.

For traders specifically researching regulated options in the region, Business24-7’s overview of forex brokers uae is a useful next step before opening an account.

Pros and Cons

Strengths

• Understanding slippage helps you assess the true cost of trading beyond the quoted spread alone.
• It can improve broker selection by shifting attention to execution quality, platform stability, and regulation.
• Regulated brokers in the Business24-7 data set include oversight from authorities such as the DFSA, SCA, FCA, ASIC, CySEC, and ADGM FSRA, which may provide more confidence around operating standards.
• Several brokers offer platform choices that may support better execution control, including MT4, MT5, cTrader, TradingView, and proprietary platforms.
• Some brokers provide additional tools that may help reduce execution risk in certain conditions, such as guaranteed stop-losses or risk-management features.

Considerations

• Even well-regulated brokers cannot eliminate slippage during major news events or thin liquidity periods.
• Low advertised spreads do not necessarily mean low total cost once commissions, overnight funding, or execution quality are considered.
• Requotes and negative slippage may be more frustrating for short-term traders using tight stop-loss or scalping-style strategies.
• Some brokers operate under multiple legal entities, so your actual protections may depend on which jurisdiction your account falls under.

Who this topic matters most to

This topic matters most if you place market orders, trade around news, or use short-term strategies where a few pips can change the result of a trade. It is also important for UAE-based beginners choosing their first broker, because slippage can make a low-spread platform look more attractive than it really is. Intermediate traders thinking about switching brokers should pay attention as well, especially if they have noticed inconsistent fills, frequent requotes, or a gap between expected and executed prices.

Business24-7 editorial view

At Business24-7, we treat slippage as a broker-evaluation issue as much as a trading concept. A platform may offer strong marketing claims, but cautious traders should look deeper at regulation, execution setup, pricing structure, and account suitability. That is especially relevant in the UAE, where readers often want the reassurance of DFSA, SCA, or ADGM-linked oversight before funding an account.

Business24-7’s content is guided by Braden Chase’s background as a former research specialist at Forex.com and by the site’s safety-first, education-led approach. If you are comparing brokers rather than just learning the term, browse the Trading Platforms and Brokers section or review the broader Trading Fundamentals category before making a decision.

How to choose a low-slippage broker

If low slippage matters to your strategy, use a practical checklist rather than relying on one headline claim.

1. Start with regulation. In the UAE context, look for relevant oversight such as DFSA or SCA where applicable. International licenses from the FCA, ASIC, or CySEC may also add confidence. Regulation does not prevent losses, but it may reduce the risk of dealing with an unreliable provider.
2. Check the pricing model. Ask whether the broker uses spread-only pricing or a commission-plus-raw-spread structure. Pepperstone Razor and Exness Raw, for example, advertise spreads from 0.0 pips but apply per-lot commissions. Capital.com and Plus500 emphasize spread-only pricing. Neither model is automatically better. It depends on your trading frequency and average position size.
3. Review platform and execution tools. Access to MT4, MT5, cTrader, TradingView, or advanced proprietary software may help you monitor fills and manage orders more precisely. Interactive Brokers, for instance, may suit users who want detailed control and professional-grade tools, though complexity can be a trade-off.
4. Consider risk management features. Guaranteed stop-loss functionality, if available, may help in some scenarios. AvaTrade’s AvaProtect and Plus500’s risk management tools are examples of features that may appeal to cautious traders. Still, every protection has conditions, costs, or product limitations.
5. Match the broker to your style. A beginner may prefer clearer pricing and easier interfaces, while a frequent trader may prioritize low spread entry points, faster execution, and platform flexibility. There is no universal best broker for slippage. There is only a better fit for your method, risk tolerance, and experience level.

One final note: if a broker claims exceptionally tight pricing, test it carefully on a demo or with minimal live capital where appropriate. Slippage, spread widening, and order rejection can behave very differently during volatile periods than they do in calm markets. Trading always involves risk, and execution quality should be evaluated over time, not from a single trade.

Slippage tolerance settings: what they mean and when they matter (forex and crypto CFDs)

Some trading platforms, especially those offering crypto CFDs or fast-moving CFD markets, use the phrase “slippage tolerance” to describe a control that limits how far the execution price is allowed to deviate from the price you requested. From a practical standpoint, it is a maximum allowed price difference for that specific order. If the market moves beyond your tolerance before the order can be filled, the trade may fail to execute, be rejected, or require resubmission depending on the platform’s order handling.

This is often where traders get confused because “slippage” sounds like something the broker should fix, while “tolerance” makes it sound like you can eliminate it. You typically cannot. What you can do is decide which risk you prefer in that moment: accepting a worse price to get filled, or risking a missed fill to avoid paying more than you planned.

A tighter tolerance can reduce the chance of a very unfavorable fill, but it can also increase the chance of failed orders in fast markets. A wider tolerance can improve fill probability, but it also increases the range of prices you might accept, which can raise your all-in transaction cost. Neither setting is universally right or wrong. It depends on the instrument, liquidity, order size, and how sensitive your strategy is to entry precision.

Consider this: slippage tolerance tends to matter most in three situations. First, when liquidity is thin, such as outside peak hours or on less-traded instruments. Second, during high volatility events, including major economic releases, crypto market spikes, or sudden risk-off moves. Third, when your position size is large enough that it may need to be filled across multiple levels. In any of these cases, a market order can move through available prices quickly, and your tolerance setting becomes the difference between getting filled at a worse level or not getting filled at all.

Whatever setting you use, keep risk in mind. Missing a fill can be frustrating, but getting filled far from your intended price can also change your risk exposure immediately, especially if you are using tight stops or higher leverage. Trading always involves risk, and controls like tolerance settings are best viewed as risk management tools, not as a guarantee of execution quality.

Frequently Asked Questions

What is slippage in forex?

Slippage in forex is the gap between your expected order price and the actual fill price. It usually happens because the market moves before the trade is executed. This may be more common during volatile news events, low-liquidity periods, or when using market orders that prioritize execution over price certainty.

Is slippage always a bad sign?

No. Slippage can be negative or positive. Negative slippage gives you a worse price, while positive slippage gives you a better one. The key issue is not whether slippage exists at all, but whether it appears excessive, frequent, or inconsistent with normal market conditions and the broker’s execution model.

What is a requote in trading?

A requote means the price you tried to trade at is no longer available, and the broker offers a new price for you to accept or reject. This often happens in fast-moving markets. Requotes may be more noticeable on certain execution setups where the original displayed price cannot be honored.

How can I avoid slippage?

You usually cannot remove slippage entirely, but you may reduce it by avoiding major news releases, using limit orders where appropriate, trading highly liquid sessions, and choosing a well-regulated broker with transparent pricing and stable technology. Execution speed and market depth both play a role, especially for active traders.

Do market orders have more slippage than limit orders?

Yes, in most cases. Market orders are designed to fill quickly at the best available price, so they are more exposed to price movement. Limit orders define the maximum or minimum price you will accept, which may reduce slippage risk but also increases the chance that the order does not execute at all.

Are low spreads the same as low slippage?

No. A broker may advertise very low spreads, but your total trading cost could still be higher if negative slippage is frequent or severe. That is why experienced traders often evaluate spreads, commissions, platform stability, and order execution together rather than focusing on a single pricing metric.

Does regulation affect slippage?

Regulation from bodies such as the DFSA, SCA, FCA, ASIC, or CySEC does not guarantee better fills, but it may give you more confidence that the broker operates under recognized standards. It can also help you avoid unlicensed firms that may present greater risks around pricing transparency and account protections.

Which brokers may suit traders worried about slippage?

Based on Business24-7 product data, traders often compare brokers such as Pepperstone, AvaTrade, XTB, Capital.com, Interactive Brokers, and Plus500 for different combinations of regulation, pricing, platform access, and usability. None can guarantee zero slippage, so the right choice depends on your order size, trading frequency, and strategy.

Why does slippage seem worse during news events?

Major news can create rapid price changes and thinner available liquidity at each price level. In those conditions, the price you see may disappear before your order is filled. That is why traders using market orders around economic releases may experience larger gaps between intended and executed prices.

What do you mean by slippage?

Slippage means your trade is executed at a different price than the one you expected when you placed the order. It happens because markets move and liquidity changes in real time. By the time your order reaches the market, the exact price you saw might no longer be available, so the order fills at the next best available level. Slippage can be positive or negative, and it is most noticeable with market orders in fast conditions.

What is the meaning of the word slippage?

In trading, “slippage” refers to the price “slipping” between the moment you decide to trade and the moment the order is actually filled. It is a plain-language way to describe an execution difference, not necessarily a platform fault. The size of the slippage can vary based on volatility, liquidity, order type, and sometimes the broker’s execution setup and technology.

Is 2% slippage good? How to judge what’s “normal”

A single number like 2% is not universally “good” or “bad” because slippage depends on the instrument, the market’s volatility, and your order type. In major forex pairs, a 2% move would typically be unusually large for normal conditions, which is why forex traders often think in pips rather than percentages. In more volatile markets, including certain crypto CFDs or thinly traded instruments, percentage moves can be much larger and faster, so a percentage-based slippage figure can look “normal” even though it would be extreme in EUR/USD.

From a practical standpoint, the best way to judge slippage is to measure it over a meaningful sample of trades and separate calm periods from event-driven volatility. Track your expected price versus executed price on both entry and exit, and note the time of day and whether a major news release occurred. If slippage is consistently worse during predictable high-volatility windows, that may be a market condition issue. If it appears frequent even in normal liquidity and stable pricing, it may justify taking a closer look at the broker’s execution quality, order handling, and the specific entity you are trading under.