Slippage is one of those terms every Forex and CFD trader meets sooner or later, usually at the moment an order fills at a slightly different price than expected. This guide explains what slippage is, why it happens, the difference between positive and negative slippage, and how order execution works on Fintana. The aim is to give you a clear, practical understanding so that price differences at execution feel less like a surprise and more like a normal part of trading.
Quick Answer
Slippage is the difference between the price you expected an order to fill at and the price it actually filled at. It happens because prices move constantly, and in fast or thin markets the available price can shift in the fraction of a second between placing and executing an order. Slippage can be negative (a worse price) or positive (a better price). Fintana uses an STP (Straight-Through Processing) execution model, and you can learn more about its platform on the Fintana official website.
What Is Slippage?
In simple terms, slippage occurs when a trade is executed at a different price than the one you saw when you placed the order. Say you click to buy EUR/USD at a quoted price, but by the time your order reaches the market the price has moved a fraction of a pip. The order fills at the new available price, and that gap is slippage.
It’s important to understand that slippage is not inherently a fault of the broker or the platform. It is a natural feature of how live markets work, where prices update many times per second and the exact price you clicked may no longer be available a moment later.
Why Does Slippage Happen?
Slippage comes down to two main forces: how fast the price is moving and how much liquidity is available at your desired price. A few common situations make it more likely.
High volatility is the most frequent cause. During major news releases, economic data, or central bank announcements, prices can move sharply in seconds, so the quote can change between your click and the fill. Low liquidity also contributes, because if there aren’t enough orders at your exact price, the trade fills at the next available level. Market gaps, such as the difference between Friday’s close and Sunday’s open, can produce larger slippage because the price effectively jumps. And very large orders can experience slippage when they are bigger than the volume available at a single price.
Positive vs Negative Slippage
Slippage is often assumed to be bad, but it can move in your favour too. What matters is the direction relative to your expected price.
| Type | What it means | Effect on you |
|---|---|---|
| Negative slippage | Order fills at a worse price than expected | You pay more or receive less |
| Positive slippage | Order fills at a better price than expected | You pay less or receive more |
| No slippage | Order fills at the expected price | The price was available as quoted |
Both outcomes are normal. In fast markets, a broker’s execution can deliver either, depending on which way the price moved in the moment your order was processed.
How Order Execution Works on Fintana
According to Fintana’s public materials, the broker uses an STP (Straight-Through Processing) execution model. In an STP setup, client orders are passed through to liquidity providers rather than being handled on a dealing desk, and the fill reflects the prices available from those providers at that moment. Because execution depends on live market prices, some slippage is possible in volatile conditions, as it is with any broker operating this way.
Fintana also provides standard order-management tools that help you control execution and risk, including stop-loss and take-profit settings, and it states that accounts include negative balance protection. These tools do not eliminate slippage, but they help you define your intended entry and exit levels in advance.
Order Types and Slippage
The order type you use affects how slippage can appear. A market order prioritises speed of execution over an exact price, so it fills at the best currently available price, which is where negative or positive slippage typically shows up. A limit order, by contrast, only executes at your specified price or better, which avoids negative slippage but carries the risk that the order may not fill at all if the price never reaches your level.
Stop-loss orders deserve particular attention. A stop-loss becomes a market order once triggered, so in a fast-moving or gapping market it can fill at a worse price than the stop level you set. This is a normal execution characteristic across the industry, not a platform-specific issue, and it is one reason risk management and position sizing matter.
How to Reduce the Impact of Slippage
You cannot remove slippage entirely, but you can reduce its impact. Trading during more liquid market hours, when spreads are typically tighter and depth is greater, tends to reduce slippage. Being cautious around scheduled high-impact news, when volatility spikes, is also sensible. Using limit orders where an exact entry matters gives you price control, and keeping position sizes sensible reduces the chance of filling across multiple price levels. None of these guarantee a specific fill, but together they make execution more predictable.
Slippage vs Spread: Not the Same Thing
Slippage and spread are sometimes confused, but they are different costs. The spread is the difference between the buy and sell price at any moment, and it is known before you trade. Slippage is the difference between your expected fill price and the actual fill price, and it appears at the moment of execution. Fintana operates a commission-free, spread-based pricing model, with EUR/USD spreads that vary by account tier, while slippage is a separate, market-driven factor that can affect any order.
Frequently Asked Questions
Is slippage always bad? No. Slippage can be negative or positive. In fast markets, an order can fill at a worse or a better price than expected.
Does Fintana cause slippage? Slippage is a market feature, not something a broker creates. Fintana uses an STP execution model, where fills reflect available liquidity-provider prices, so some slippage is possible in volatile conditions.
Can I avoid slippage completely? Not entirely. Using limit orders, trading in liquid hours, and being cautious around major news can reduce it, but no method removes it for every order.
Is slippage the same as the spread? No. The spread is known before you trade, while slippage appears at execution when the available price differs from your expected price.
Important Risk Disclosure
CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. This article is general educational information about slippage and order execution only; it is not investment advice, and it does not guarantee any fill price or outcome. Always confirm current terms on the Fintana official website and verify its licence independently before acting.
