The price of AUD/USD was 0.9045. After analysing the markets, you speculate that it is on an upward trend and open a long position of one standard lot on the AUD/USD at the current price of 0.9045 – expecting to execute at that same price of 0.9045.
The market follows your speculation, but goes past your execution price and up to 0.9045 very rapidly. Because your expected price of 0.9045 is not available in the market, you’re offered the next best available price. For the sake of the example, let’s say the price is now 0.9045.
In this case, you would experience positive slippage:
0.9045 – 0.9045 = 0.0005, or +5 pips.
However, let’s say your trade was executed at 0.9055, you would then experience negative slippage:
0.9050-0.9055=-0.0005,or -5 pips.
It is important to note that the Slippage may appear in all types of transactions, such as stop loss, arbitrage, buy/sell stops, and buy/sell limit orders. Since the Pro Capitals Limited use market transactions, there is no guarantee that such transactions will not occur.
We offer market transaction execution, and that's why we can't liquidate a price that doesn't exist. If the price you set is not available, your order will be directly tied to the current market by our foreign exchange liquidity provider.