Trading in the forex market can be lucrative, but it can also come with risks, including slippage. IC Markets offers traders a unique advantage when it comes to slippage, with their average slippage being one of the lowest in the industry. In this article, we will explore IC Markets average slippage, what it is, and how it can benefit traders of all experience levels.
What is IC Markets Average Slippage?
IC Markets is a leading online brokerage firm that offers traders a wide range of financial instruments to trade, including Forex, CFDs, indices, stocks and commodities. The company has a competitive Edge technology that ensures low spreads, high leverage and fast execution on trades. One of the main features of their trading platform is the slippage. Slippage is the difference between the price that is requested for an order and the price that is actually filled by the broker. Slippage can be positive or negative depending on the direction of the trade. The average slippage for IC Markets is 0.3 – 0.6 pips, which is reasonably low compared to most online brokers.
Pros and Cons of IC Markets Slippage
The IC Markets slippage is an advantage for traders, as it ensures good execution of orders, which is an important factor in making profits as a Forex trader. The low slippage also reduces the risk of trading, as it prevents the financial losses that can be caused by unpredictable price movements in the financial markets.
However, traders must be aware of the potential for slippage to cause losses in their trades as well. Although the average slippage for IC Markets is 0.3 – 0.6 pips, prices in the markets are liable to change quickly and unexpectedly, which can cause slippage to be higher than expected. Therefore, traders should be prepared for the possibility of large losses when trading on IC Markets due to slippage.
How to Minimize Risk with IC Markets Slippage
While the risk of slippage cannot be completely eliminated with any broker, traders can take steps to minimize their risk when trading with IC Markets. The first step in minimizing slippage risk is to ensure that orders are placed before the market opens to avoid price movements that can cause slippage. This is especially important when placing large orders, as price differences can be larger in more highly traded currencies.
Another way to reduce slippage risk is to research the financial markets and analyze past price movements to determine when the market is likely to move in either direction. This will help traders to identify opportunities to enter and exit trades at points when the market is less likely to move sharply and cause unexpected slippage. Additionally, traders can use automated trading platforms to more precisely manage their orders and trades. Such platforms can be programmed to place orders at predetermined price levels and stop losses at predetermined levels. This will reduce the risk of losses due to slippage.