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Trade
Traded without slippage
Price slippage when working in the currency market have a negative impact on trading results. The costs of the speculator, as a rule, are formed due to spread, commissions, swap credits. Cost reduction for each of these points will help save money. If the swap situation is understandable, with the cost spread can still "magic".
You can open an account without the accrual of swaps, it is impossible to keep open position overnight, in these cases, the trader will have to save some money. Fee that is charged by some brokerage companies, saving via rebate. It remains to deal with those items that we spend in the implementation of each operation.
Spread may be fixed or dynamically changing. In any case, we spend for the transaction a certain number of points. Naturally, you need to try to reduce such expenses. The first thing to do is to register a trading account in the rebate. Thanks to the return of the spread, traders can save considerable sums. Trade speculator will occur in the same form as before, but in a more economical mode.
Price slippage is encountered in the accounts the type of execution Market Execution.
Account which accepted order execution technology Instant Execution, does not have the ability to slip past your trader prices. However, this technology has other unpleasant features, which You can read in a special article.
Not only on the spread we are wasting precious points during trading. In the transaction we can see the slippage, requotes. Such unexpected expenses you must reduce, otherwise they can drive the efficiency to zero.
Especially noticeable slippage when the market is experiencing sharp price movements, for example, during important news release. Pressing the button of opening of a position, a person can see that the trade was opened, but with a much worse price than the one he chose. Such slippage can often exceed the spread value.
Pending orders against slippage
The best way to get rid of slippage is to work in the market with using pending orders. In this case, the opening and closing of positions are taking place at the prices offered by the trader. For this trade you can use Stop Limit orders that allow you to open the trades just at prices that suited us. Profits and losses should use orders Take Profit and Stop Loss. Follow even such simple rules will allow you to significantly increase the accuracy of trading orders.
When working with EAS, their codes are often used slipage, allowing the work not to refuse the transaction in case if the order cannot be completed at their assigned price. For example, the robot sends the order to buy a specific amount of a currency pair at the price of 1.3455. If the broker responds with the price of the transaction 1.3456, the EA will refuse.
If trader will put slipage = 3 points, in the above situation will occur in the purchase of a currency pair set volume at price 1.3456. The same deal would have opened up and prices 1.3457, then 1.3458, but for the price 1.3459 robot already would have refused the position.
It turns out that slipage is the level of acceptable deviations of prices from the beginning of the robot is sent the value. If offered by a broker the price in response to the request of the adviser will be different from the declared by more than the size of the parameter slipage, the transaction will not take place.
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| Category: Forex | Added by: (05.11.2017)
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| Views: 339
| Rating: 0.0/0 |
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