- How to get the latency of a signal (provider and receiver).
- A few questions about forwarding trade signals? Is this possible?
- Copy/subscription.
Slippage occurs due to the difference in price between broker servers and the delay in trade/copy execution, making it unavoidable. These two factors are always present when copying trades.
Slippage can happen even when using servers from the same broker as the signal provider because the copying delay persists. It may seem surprising that sometimes other broker servers experience less slippage than servers from the same broker as the signal provider, but it does happen.
During high-impact news events and periods of increased volatility, slippage can escalate to significant levels. Therefore, it is highly advisable to avoid copying trades during these events and for signal providers to refrain from opening trades at such times.
Minimizing latency is an effective way to reduce slippage in copied trades. A quick and efficient execution results in a better price for copied trades. However, this method works only for servers with similar or identical prices to those of the signal provider. Therefore, it is essential to check the Slippage tab for the best broker/server setups. Green and upper yellow values indicate the best options.
I would like to add a few more details about slippage, which many traders ignore.
Slippage is not only because of delays and any latency between the trader’s computer and the broker’s trade server. One should also remember that the brokers themselves are connected to liquidity and data-feed providers. These connections also suffer latency.
These different servers have to process these transactions and information and this takes time no matter how fast these computers may be.
Forex is not a centralised exchange, making it even more complex.
It can be random and unpredictable, and builds up the more interactions there are, especially during news events.
Put this all together, and it becomes impossible to achieve consistent slippage results.
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