Slippage in CFD Trading

First of all, what is slippage? Slippage means that your order has been filled at a different price compared to the price on your order ticket. The amount of slippage is the difference between the initial order price and the price at which the order was filled.

How do you know that slippage is happening in your account? Take note of your original order price and match it with your actual executed order price. Also, research stock forums for other users who have had problems with slippage with CFDs. If you had any problems with slippage, leave a comment below.

Gapping can also cause slippage: markets gap when they open, especially when there is news for a certain company. How can gapping cause slippage? If you have any market orders, stop-loss or stop entry orders in the gap territory, you may be in line for some slippage in your trade.

How do you avoid slippage in your CFD trading? Simple. Use limit orders instead of market orders. Don’t trade illiquid markets – stick to liquid stocks. Trade when the market is open and avoid fast moving markets.