Slippage, execution speed, and system delays are critical factors that affect the outcome of your trades, but they are fundamentally different issues that should be investigated separately. The exact cause of an issue cannot be determined solely from what appears on your screen.
What is Slippage and Why Does It Occur?
Slippage occurs when your order is filled at a different price than expected. The actual execution price differs from your requested price, typically occurring when prices move rapidly or liquidity is insufficient. Slippage usually occurs due to the following factors:
- Market Volatility: Rapid price movements during news releases or major events.
- Low Liquidity: Fewer buyers and sellers in the market can cause price gaps.
- Order Size: Large orders may not be filled at a single price level.
For example, suppose you want to sell one lot of EUR/AUD at 1.7895. If that price is no longer available when you place the order, it will be executed at the next best available price—1.7891 in this case. This results in slippage of 4 pips.
Slippage can be positive or negative, depending on whether the price moves in your favor or against you. In this example, the order was executed at a lower price than the one you initially requested, resulting in positive slippage.
Execution Speed vs. Order Delays
Execution speed determines how quickly your trade is placed. It refers to how fast your broker processes your order and sends it to the market. Faster execution reduces the risk of slippage and increases the likelihood of receiving a price closer to your intended level. In fast-moving markets, even a delay of a few milliseconds can lead to slippage. Scalpers and day traders rely heavily on fast execution to support their profitability.
Conversely, order delays are specific technical occurrences that may involve network transmission, order processing, execution conditions, or system status.
Chart Freezing
Chart freezing or quotation updates suddenly stopping is entirely separate from execution speed or slippage. This symptom typically relates to network connectivity, server connections, specific product trading hours, or quotation updates.
How to Report and Troubleshoot Issues
If you encounter an issue on MH Markets, a proper assessment of a particular order requires quotation data, order logs, and execution rules. To help investigate, record the following details:
- Trading account and Order number
- Instrument and Server time
- Error message and Execution details
While screenshots or screen recordings may help explain the issue, the backend data is required for a complete resolution.
If you need clarification or assistance, you can chat with the MH Markets support team: email us at support@mhmarkets.com or log in to your MH Profile and start a Live Chat with our team.