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06.01. Actions: Slippage management (Market)

Dealing Desk is able to imitate or increase negative/positive slippages for trades. Can be combined with the worst price, market worst, current price and requested price confirmation types.
Slippage is the difference between the price the trader has requested, and the price at which the broker confirms the request. Slippage is measured in points, and can be both negative and positive for traders. For example, a trader has requested a buy at 1.10, and the confirmed price after processing the request is 1.13. This 3-point slippage is negative for the trader, because they buy at a higher price.
Slippage can occur because of the market volatility: the actual price has moved a bit after the instant the trader has requested an order. This type of slippage is called natural.
If a trade’s market price is ending up having a positive slippage for a trader, the broker can reduce it with a negative artificial slippage. It works both ways: brokers can compensate negative slippages for their traders. This kind of price adjustment is called custom, or artificial slippage.
There are separate settings for each type of custom slippage based on what kind of natural slippage has occurred. Each field sets a range of additional slippages possible. A random value will be picked from that range and added to the natural slippage. Single values are acceptable as well. There is also an option to set a random occurrence of additional slippages.
Slippage adding logic: Both positive and negative numbers can be specified. Positive numbers add positive slippage to the price, negative numbers add negative slippage.
Placing a = flag before the values will set a fixed artificial slippage so that the type of natural slippage will be taken into account, but its value will be overridden by the values specified in the Editor. Following the example above, if a broker sets Negative slippage action to = -2, the final price for the client would be 1.15.
  • Positive Action
    Defines how much of additional slippage will be added to a natural positive slippage. Positive here means a lower price for Buy and higher price for Sell orders.
    Example: = -5 -10 50%
    The slippage will be set to a random value between -5 and -10. It will be done in 50% of cases, otherwise only natural slippage will be applied.
  • Negative Action
    Defines how much of additional slippage will be added to a natural negative slippage. Negative here means a higher price for Buy and lower price for Sell orders.
    Example: -5 1
    A random slippage value between -5 and +1 will be added to the final price. It will be done in 100% cases.
  • Zero Action
    Defines how much of the artificial slippage will be added if the natural slippage was zero. In other words, if the market price is currently the same as requested.
    Example: = -3 30%
    The slippage will be set to -3 in 30% of cases.
  • Max Range
    Defines the limits which the natural and artificial slippages combined can not exceed. Requires two numbers:
    • Negative: To limit too much negative slippage
    • Positive: To limit too much positive slippage
    Example: -5 10
    If the calculated slippage value exceeds the limits of -5 or +10, the resulting slippage will be set to -5 or +10.
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    Please note that since the mechanics of Max range is to limit slippage from deviating too far from the requested price, Market worst’s case of protecting users from price gaps may not work as expected:

    Current price: 1.200
    Requested price (a sell stop order): 1.000
    Max range: -100 100
    Market price after gap: 0.700
    Confirmed price: 0.900

    Here Max range limited the price deviation from the requested one by 100 points, even though Market worst should’ve seemingly excluded the requested price from the equation.
  • Custom Deviation
    Works only with Instant orders.