Take Profit (TP) and Stop Loss (SL) are tools designed to protect profits and limit losses. Generally, they are executed at the current available market price, which can sometimes result in slippage.
Common Causes of Slippage:
- High Market Volatility – Rapid price fluctuations can cause the market price to move past your set TP or SL, triggering execution at a different price.
- Low Liquidity – In markets with fewer buyers and sellers, it may be difficult to match orders exactly at your set TP or SL, leading to execution at an unexpected price.
- Major News Releases – Political events, economic data, or emergency announcements can cause sudden sharp price movements, affecting TP/SL execution.
Tip: Slippage is a normal occurrence in trading. To minimize it, consider trading in high-liquidity markets, use limit orders where possible, and monitor market news closely.