Hi Everyone, Can someone explain or provide any logical reasons behind finding out when slippage in the market might occur ? I am new and trying to figure out, what is the cause at the core of market slippage. Thank You -Delerious
It's just happening when there is major scheduled news events, such as FOMC announcements or company's earnings announcement, etc. If you ask me what is my major weakness, it'd be my screaming on market slippage. Jk But I'm better now as using a limit orders can avoid slippage.
Market slippage happens generally when the price movement is relatively high in the market or when any important economic data or news is released. Sometimes statements of big personalities such as FOMC officials, also play major role in the slippage.
Slippage mainly occurs due to excessive volatility in the market during the release of any key economic news