When trading with codes, you have to define slippage and below are examples with SRC.
However, I have a few questions:
. May I understand that there's some relationship between spread and slippage in live trading? E.g. Less spread and less slippage. Or other relationship or corresponding?
. Does 'slippage' really work? How to define it correctly in codes or EA?
. Or does it depend on broker for 'slippage' to really work?
- spread >> ask-bid. a gap for buy and sell
- slippage >> how much you are willing to offset your requested price because usually the requested price is no longer available is mere seconds.
Slippage is the difference between what you expect to pay for a stock or ETF and the actual price you get. It is also the difference between what you expect to sell a stock or ETF for and what you actually receive.
Slippage is a big problem with discount brokers. They often have rock bottom prices – and rock bottom execution as a result. So you might save a few dollars on commissions but pay hundreds more for the stocks you buy. To make sure that doesn’t happen, check out Scottrade Online Broker. They have consistently provided customers with prices that are even better than the national averages.
To add comments, please log in or register