Ohio Markets uses floating spreads, which reflect real market conditions. During periods of low liquidity or high market volatility, spreads may widen, and slippage can occur naturally.
Common Causes of Slippage:
- High Market Volatility – Rapid price movements within a short period can prevent trades from executing at the expected price. In such cases, orders are filled at the current available market price, causing slippage.
- Low Liquidity – In markets with fewer buy and sell orders, it may be difficult to match your trades at the desired price, leading to execution at different prices.
- Major News Releases – Political events, economic data, or emergency announcements can trigger sharp price fluctuations, increasing the likelihood of slippage.
Slippage is a normal occurrence in trading, and understanding these factors can help you manage expectations and adjust trading strategies accordingly.