Is it possible to avoid slippage?
While you can’t completely eliminate slippage, you can take steps to reduce it:
- Use limit orders:
Instead of market orders, use limit orders to set the specific price at which you want to buy or sell, helping you avoid unexpected price changes. - Trade during peak hours:
Trade when the market is most active, such as during major sessions, to benefit from more buyers and sellers, which can lead to more stable prices. - Monitor market conditions:
Stay aware of upcoming economic events or news that could cause volatility. If you’re worried about slippage, it’s best to avoid trading during these times.
By using these tips, you can help minimize slippage in your trades.