Large size trade gets more slippage?

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Deevog
2167
Deevog  

Hi,

I'm using different EA's for trades it's possible large sizing trades face more slippage compare to small size?

Thanks for your repay and experience

Alain Verleyen
36171
Alain Verleyen  
Deevog:

Hi,

I'm using different EA's for trades it's possible large sizing trades face more slippage compare to small size?

Thanks for your repay and experience

Yes of course.

Do you understand what a trade is ?

See : The Process of Selling and Buying. Slippage. The Concept of Liquidity

Principles of Exchange Pricing through the Example of Moscow Exchange's Derivatives Market
Principles of Exchange Pricing through the Example of Moscow Exchange's Derivatives Market
  • 2015.02.26
  • Vasiliy Sokolov
  • www.mql5.com
This article describes the theory of exchange pricing and clearing specifics of Moscow Exchange's Derivatives Market. This is a comprehensive article for beginners who want to get their first exchange experience on derivatives trading, as well as for experienced forex traders who are considering trading on a centralized exchange platform.
Deevog
2167
Deevog  
Alain Verleyen:

Yes of course.

Do you understand what a trade is ?

See : The Process of Selling and Buying. Slippage. The Concept of Liquidity

Then what is solution with same broker I need multi accounts to split funds with this process lot sizing will be reduce ?

Can you please measure what is normal trade size in Forex for less slippage?

Looking replay

Alain Verleyen
36171
Alain Verleyen  
Deevog:

Then what is solution with same broker I need multi accounts to split funds with this process lot sizing will be reduce ?

Can you please measure what is normal trade size in Forex for less slippage?

Looking replay

Depends of what is "big", also depends of the broker. In Forex, liquidity is very big.
Chunsheng Yang
177
Chunsheng Yang  
Alain Verleyen:
Depends of what is "big", also depends of the broker. In Forex, liquidity is very big.

Yes, if your order is so big that no counter-side can fulfill, your bidding (in general, not the "bid" in financial market)  price has to become "worse" .Graphically speaking, you just "eat up" all the middle part of market depth chart.


However, this is not the same meaning to which we normally refer "slippage".  Slippage usually refers to cheating conducted by market makers.

(please do not waste time to set the slippage in OrderSend() ...you get it ;-)

Waseem Raza
10000
Waseem Raza  
Chunsheng Yang:

Yes, if your order is so big that no counter-side can fulfill, your bidding (in general, not the "bid" in financial market)  price has to become "worse" .Graphically speaking, you just "eat up" all the middle part of market depth chart.


However, this is not the same meaning to which we normally refer "slippage".  Slippage usually refers to cheating conducted by market makers.

(please do not waste time to set the slippage in OrderSend() ...you get it ;-)


Let's say we have a broker with STP/ECN model instead of Market Maker then in forex what is a normal trade size which gets less slippage  i.e  

.01 to .25 less slippage 

.25 to  .50 normal slippage

.50 to .99   more slippage  

can we set these figures for trading?

Chunsheng Yang
177
Chunsheng Yang  
Waseem Raza:

Let's say we have a broker with STP/ECN model instead of Market Maker then in forex what is a normal trade size which gets less slippage  i.e  

.01 to .25 less slippage 

.25 to  .50 normal slippage

.50 to .99   more slippage  

can we set these figures for trading?

1.

RefreshRates();
double bid=Bid;
Print("right before OrderSend ",bid);
OrderSend(Symbol(),OP_SELL,0.01,bid, ...);

//replace Bid with Ask for OP_BUY 

2.

Please go to the "Experts" tab in "Terminal", looking for lines similar to the following:

cheat


3.

Now, the price difference is the abnormal slippage to (since I have eliminated external factors such as latency and illiquidity with really small lot and low latency).


ping


(I would not opt for an arbitrary threshold to dichotomize whether the slippage is normal or not).    


Looking forward to constructive criticism.

nicholi shen
1922
nicholi shen  
Waseem Raza:

Let's say we have a broker with STP/ECN model instead of Market Maker then in forex what is a normal trade size which gets less slippage  i.e  

.01 to .25 less slippage 

.25 to  .50 normal slippage

.50 to .99   more slippage  

can we set these figures for trading?


It really depends on market conditions, but you shouldn't be getting much slippage on ECN with less than one lot. 

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