Slippage

RECENT NEWS
The Economic Times  Oct 13  Comment 
We believe the Centre will likely breach the FY18 fiscal deficit target of 3.2 per cent of GDP by 0.5 per cent if its goes about with a fiscal stimulus package, said USB Securities.
The Economic Times  Jun 29  Comment 
Larger state deficits would delay an expected gradual reduction in general government debt, which includes central and state government debt.
The Economic Times  Feb 28  Comment 
The Street, however, is not so much worried about meeting the fiscal deficit target for the coming fiscal year, but more on the quality of the additional spending.
The Economic Times  Feb 21  Comment 
Several brokerages said the government could slip marginally from its fiscal consolidation goals.
The Economic Times  Jan 30  Comment 
Jaitley's comments came a day after Raghuram Rajan warned against borrowing more to spur spending for higher economic growth, saying such a move could risk macroeconomic stability of the country.
The Economic Times  Dec 21  Comment 
"Markets closely look at these agencies. Many emerging market funds allocate money based on what these agencies have to say about an economy."
The Economic Times  Oct 6  Comment 
Nitin Gadkari recently said that corrective steps by Modi govt have led to roll out of majority of the Rs 3.8 lakh crore stuck highways projects.




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

Slippage refers to a failure to meet expectation with regard to the execution of an order. The slippage represents the difference between a trader’s estimated transaction costs and the amount actually paid due to market conditions or poor execution by the broker. It reflects how an order’s fill price differs from the price level that was entered. For example, if a sell stop loss order was placed at 1465 in the E-Mini S&P future contract and the order was filled at 1464.75, one would have experienced 1 tick of slippage on the order.

A market order is an order to transact a pre-specified number of shares at market price, which will cause an immediate execution, but is subject to price impact. Therefore, if you use a market order, there is no slippage. If you use a stop order, then when the market trades at your price, your stop becomes a market order and it gets filled at the current market price. You have slippage because you have a target price but you do not get it.Your stop price triggers the market order and the price you get depends on the liquidity of the market, the bid/ask spread, the size of the order and the market volatility. Slippage is common on stop orders.

The more volatile the market, the bigger is the chance of slippage. The more liquid the market, the smaller is the slippage. In some cases, it may even happen that you get a good fill below your stop price. The only way to avoid slippage is through the use of limit orders. By doing that, you demand a specific price to the market. Of course, the drawback is that you might miss a good profit because your order does not find a counterpart for the transaction and prices run immediately in your desired direction. If you trade within a short-term time frame using limit orders, you have to expect not to be filled every time. Note that if this can be accepted when you open a position, not being filled on a limit order might really be a problem when you want to close your position. Close monitoring of the market action is then required to make the proper decision. If you want to make sure that you are out of a position when you want to be, you have to enter a market or a stop order and accept slippage as an extra cost to pay for the certainty of the execution.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki