Delays on Execution -The Slippage Factor
The delay between the time you press the button on your PC and the time your
order is actually executed in the Forex Market is called the slippage. If we measure
this delay in real time we might say that this delay is between 0.1 seconds to 1.5
seconds. Slippage is generating price manipulation and that is why it is measured in
pips. One pip equals commonly 0.0001 of the value of a currency pair. The average
slippage in the market today is between 1-2 pips.
The Importance of Tiny Segments of Time
But why should a trader even care about such a tiny delay of less than 2 seconds?
Think about that. There are numerous arbitrage systems today that are trading
Forex in timeframes measured in million-seconds. These systems constitute the so
called ‘Million-Second Forex Market’.
One (1) second for a scalping system equals 1 month for a regular trader.
Furthermore if you trade the news (News-Trader) 1 second is the difference between
making a huge profit and suffering a huge loss. News-Trading is one of the six
trading styles presented in Chapter-6.
“Time is the most disputed issue in the men’s history”
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Systems at ForexAutomatic.com: » Forex Robots and other Automated Systems
Forex Guide v1.0 – Qexpert.com
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