Slippage in Forex: Why Prices Change When You Execute a Trade

Slippage and requotes—two crucial, yet often misunderstood, aspects of Forex trading that can make or break your strategy, especially during high volatility.

When you click that “Buy” or “Sell” button in your trading platform, you might expect your order to be filled instantly at the exact price you see. But often, the final execution price differs. Sometimes it’s better, sometimes worse—and sometimes, you’re hit with a requote. If you’ve ever wondered why this happens, you’re not alone.

Let’s break them down and learn how to handle them like a pro.

What is Slippage in Forex?

Slippage occurs when a trade is executed at a different price than the one you requested. This happens because prices in the Forex market change in milliseconds. If your broker can’t fill your order at the requested price due to market conditions, it will fill it at the next best available price.

📉 Example of Negative Slippage:

You try to buy EUR/USD at 1.0800, but by the time your order reaches the market, all the sellers at 1.0800 are gone. The next available price is 1.0815. Your order is executed at 1.0815, costing you 15 extra pips.

📈 Example of Positive Slippage:

You place a buy order at 1.0800, but the market momentarily dips to 1.0795. Your broker manages to fill your order at 1.0795 instead—giving you a better entry price and a 5-pip bonus.

Slippage is normal and can go either way. But during high-impact events, it often works against you unless your broker offers slippage protection.

What Causes Slippage?

Several factors contribute to slippage:

Market Volatility: News releases, geopolitical events, and economic reports can cause prices to move rapidly.
Low Liquidity: When there aren’t enough buyers or sellers at your requested price, your order jumps to the next best match.
Order Type: Market orders (which prioritize execution over price) are more prone to slippage than limit orders.
Broker Speed: The execution speed and technology of your broker also play a major role.

What is a Requote?

A requote occurs when your broker cannot fill your order at the requested price and instead offers you a new price. You must then choose whether to accept or reject the new quote.

This typically happens with market makers and brokers who use slower execution models, especially in fast-moving markets.

Requote Example:

You place an order to sell GBP/USD at 1.2650. The broker receives the order, but by that time the market has jumped to 1.2670. The broker sends you a message:
“Price has changed. New price: 1.2670. Do you accept?”

If you accept, your order is filled at 1.2670. If you decline, the order is canceled.

When Are Slippage and Requotes Most Common?

Both slippage and requotes are more likely to occur during:

Major news releases (e.g., NFP, interest rate decisions).
Thin liquidity periods (e.g., right before market close or after market open).
Flash crashes or unexpected geopolitical events.

How Execution Models Impact Slippage and Requotes

There are generally two types of broker execution models:

Market Makers: Often more prone to requotes. They take the opposite side of your trade and can offer new prices if the market moves quickly.
ECN/STP Brokers: They route your orders directly to liquidity providers. Slippage can still occur, but requotes are rare. You simply get filled at the best available price.

Pro tip: Always check whether your broker is an ECN/STP or market maker. Transparency in execution policy matters.

How to Minimize Slippage and Avoid Requotes

You can’t eliminate slippage or requotes completely, but you can manage and minimize their impact:

Use Limit Orders

Limit orders only execute at your specified price or better. They protect you from negative slippage but may result in missed opportunities if the market never reaches your price.

Avoid High-Impact News

Unless you’re a seasoned news trader, it’s wise to steer clear of trading right before or after major economic announcements.

Choose a Fast Broker

Execution speed matters. Choose brokers with a good track record of low slippage and minimal requotes. Look for:

Low latency platforms
Direct market access
Tier-1 liquidity providers

Use Slippage Protection Tools

Some brokers offer slippage control features that let you set a maximum deviation. If the slippage exceeds this value, the trade won’t be executed.

Reduce Lot Size During Volatility

Large orders are harder to fill precisely. Reducing your lot size can improve your chances of getting filled near your requested price.

Conclusion

In Forex, every pip counts—especially when trading high-frequency or with tight stop-losses. Slippage and requotes aren’t “broker tricks” as many believe. They’re a natural consequence of trading in a real-time, decentralized, fast-moving market.

But here’s the deal: once you understand them, you can build strategies around them. Whether that’s adjusting your entry methods, choosing the right broker, or avoiding certain trading windows—this knowledge gives you the edge.

The next time your trade executes at a different price, don’t panic. Ask yourself: Was it slippage? A requote? Or just the nature of the beast?

Either way, you’ll be ready for it.