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Warranty on orders, slippage and scalping

This is perhaps the most difficult issue to deal as it is linked, as always, our broker of choice (sorry to be so repetitive about it), depending on the broker because there are various policies that seek to protect their interests and of course we must know to learn to operate them:

Warranty on orders

As we know the broker can not guarantee to execute all orders placed at any price because there are prices that are not always available. For this reason, the broker who often have this kind of guarantees on the price of execution usually limit the entry of orders especially during times of high volatility in the news, leaving only do 30 minutes or more before releasing them.

Slippage

The slippage is a common practice in which brokers do not guarantee the price, this is basically to ensure the execution but only at the best price available, which can be executed. The desired price can run another price which and is generally worse than in the case of the news is often at the end of initial movement that generates it.

Scalping

Is perhaps the most difficult to operate in the Forex, are the people who both orders with market orders entry can even enter hundreds of orders a day in search of a few pips that can be obtained from differences in the price between the two operators. However, most brokers are considered undesirable and their orders are in principle limited by the distance from the current price and finally have a clause to all contracts where they can unilaterally terminate the contract and therefore be banned in that institution.

As you will see the issue of orders is much more complex and extensive, as it might seem in principle. By the time they want to make this reflection, orders like so many other tools we provide are only to operate this tool if want an operating system based solely on these tools should consider this, if it is so effective because nobody has done before. Above the entire question absolutely essential to operate in any market as less a professional would do.


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