The execution price of your order may differ from your expected price due to several factors:
- High Market Volatility – During volatile market conditions, prices can move quickly, causing orders to be executed at prices slightly different from your intended price.
- Low Liquidity – In markets with fewer buyers and sellers, it may be difficult to match orders at your desired price, leading to slippage.
- Major News Releases – Political events, economic data, or emergency announcements can cause sharp market fluctuations, affecting order execution prices.
How to Minimize This:
- Use limit orders instead of market orders to control entry and exit prices.
- Trade in high-liquidity markets where order matching is faster.
- Monitor market conditions closely, especially during news events or high volatility periods.
Slippage is a normal occurrence in trading, and understanding market conditions can help you manage its impact.