NOTÍCIAS FOREX

Silver, platinum and palladium are in complete chaos this morning, with all three metals exhibiting violent, double-digit price swings within hours of the market open. Silver reached all the way to $84 per ounce earlier today, before electing to explore lows of $75. Platinum briefly breached $2,500 at one point, only to dip back down to $2,200. Palladium is equally unstable. Gold has been practically stationary in comparison, incurring only a minor loss so far today. The rallies in precious metals achieved full-on hysteria last Friday, with silver, platinum and palladium all registering double-digit gains. Silver closed the week at $79 per ounce, meaning the white metal has gained $50 since the start of the year. There is no other way to describe the rise in silver other than parabolic, and yet the metal is not alone. Platinum started the year under $900 per ounce; it now stands above $2,400. Palladium, while not quite matching the outrageous performances of silver and platinum, has still doubled this year, from $900 in January to over $1,900 last week. Gold meanwhile had a relatively humble week, gaining around $200 by Friday and registering a fresh record high of $4,550 per ounce. Exuberance aside, some cracks are finally beginning to show for silver. Last week, Elon Musk said the situation in silver markets was “not good”, referring to the key role that silver plays in many industrial applications. The gap between supply and demand continues to widen as miners struggle to keep up, with deficits expected to persist in 2026. Meanwhile, the Chicago Mercantile Exchange has raised the margin requirement for silver futures from $20,000 to $25,000, starting from today. The move effectively limits the leverage on offer, forcing parties to either commit more capital or reduce position size. It is not the first time the CME Group has made such an adjustment, having also done so in 1980 and 2011, among other times. The salient point about the 1980 and 2011 adjustments is that they corresponded to local highs in the silver markets, which would take years to reattain. Adding yet more fuel to the fire, China is expected to impose export controls on silver starting on the first of January 2026. With that said, buyers are still putting pressure on precious metals as of this morning. How the situation resolves is anyone’s guess. The economic calendar is once again devoid of content this week, with the notable exception of the latest FOMC minutes on Tuesday. The transcript should provide some insight into the Fed’s overall sentiment going into next year, but ultimately, few are expecting a rate cut at the end of January. On Wednesday, many markets will close early on New Year’s Eve, although US markets will remain open all day. Markets throughout the world will be closed on New Year’s Day, while Japanese markets will remain shut on Friday as well. In all likelihood, precious metals will dominate the week’s proceedings. #Silver #Platinum #Metals

If you are new to trading then you need to understand everything there is to know about what a pip is, and how they are calculated when you are trading. A pip is the smallest standard unit used to measure movement in a forex quote. It appears in the fourth decimal place for most currency pairs and the second decimal place for Japanese yen pairs. For example, if EUR/USD rises from 1.1506 to 1.1507, it has moved by one pip. That definition is useful, but it is not usually the first thing a trader really wants to know. The more important question is: how much money is that one-pip movement worth? For EUR/USD, the approximate value of one pip in a US dollar account is: This means that a 20-pip movement could be worth $200 when trading one standard lot, but only $2 when trading a micro lot. The price has travelled the same distance in both cases; it is the position size that changes the financial result. JPY currency pairs and gold are calculated differently. Their pip values can also fluctuate with the exchange rate or depend on the platform's contract and quoting convention, so we will cover both separately and include them in the conversion table below. In this guide, we will look at where the pip sits within a forex quote and how its value changes across currency pairs and lot sizes. We will then work through three calculation scenarios, explain the special conventions used for gold and JPY pairs, and show how pips help traders set stop-losses, calculate position sizes and measure risk in actual money. The illustrative EUR/USD quote reflects the market range on 29 July 2026; the ECB's latest available reference rate was approximately 1.15 US dollars per euro. (European Central Bank) A pip is the standard unit used to measure price movement in forex, usually appearing in the fourth decimal place; or the second decimal place for JPY pairs. On EUR/USD, one pip is worth approximately $10 when trading a standard lot and $0.10 when trading a micro lot, although the value varies according to the currency pair and position size. Knowing the pip value is important because it converts a stop-loss distance on a chart into a real monetary amount. Without that calculation, it is difficult to know how much money is actually at risk. Once you understand pip values and position sizing, you can put that knowledge into practice with a Radex Markets trading account. A pip is a standard unit of price movement in forex. The term is short for "percentage in point" and, for most currency pairs, represents a movement in the fourth decimal place. One pip equals 0.0001, or one-hundredth of one percent. Take an illustrative EUR/USD quote of 1.15069. Reading the decimal places from left to right, the digits are 1 tenth, 5 hundredths, 0 thousandths, 6 ten-thousandths and 9 hundred-thousandths. The fourth digit, the 6, occupies the pip position, while the final 9 represents a pipette, which is one-tenth of a pip. There are two important exceptions to remember. JPY currency pairs place the pip in the second decimal position, while gold uses contract and platform conventions that are not completely standardised. We will examine both cases in the dedicated gold and JPY section below. A pip should not be confused with the spread. A pip measures price movement, whereas the spread is the difference between a currency pair's bid and ask prices, expressed in pips. A fuller explanation of trading spreads can be found in our dedicated spread article. Read more：What Is Spread in Forex? Formula, Calculation & Examples The table below gives the answer first. The calculation method, and the reason some pip values remain fixed while others change, will be explained in the next section. Approximate pip values for a US dollar-denominated account, checked on 29 July 2026. The USD/JPY calculation uses an illustrative market rate of approximately 159.90. (Reuters) *The XAU/USD figures assume the common convention that one standard lot represents 100 troy ounces, and a $0.01 price movement is treated as one pip. Gold pip terminology and contract specifications can vary between brokers and platforms. To use the table, find the instrument first and then move across to the column matching your lot size. A trader opening 0.01 lot of EUR/USD, for example, would have an approximate pip value of $0.10. A 20-pip movement would therefore represent approximately $2 before spreads, commission and other trading costs. The 0.01-lot column is particularly relevant to beginners because micro lots allow the effect of each pip to remain relatively small. However, a smaller position does not automatically make a trade sensible; the stop-loss distance and total account risk still need to be calculated. Pip values for EUR/USD and GBP/USD are fixed in a US dollar account because USD is the quote currency. The value for USD/JPY changes as its exchange rate moves. Under the clearly stated XAU/USD contract convention, the dollar value is fixed, although another broker may define a gold pip differently. This is why checking the instrument specification on your own trading platform matters. Pip value is calculated by multiplying the pip size by the number of currency units in the position, then converting the result into the currency of the trading account where necessary. The general formula is: Pip value = pip size × contract units ÷ exchange-rate conversion That formula needs a little context because the final conversion depends on how the currency pair is arranged. If the quote currency is the same as the account currency, no further conversion is required. If the account currency appears first in the pair, the quote-currency result is divided by the exchange rate. Cross pairs require one additional conversion into the account currency. The examples below use standard lots of 100,000 currency units and illustrative exchange rates based on the ECB reference rates published on 4 August 2026. These rates are used to explain the calculation rather than to represent an executable trading price. The simplest calculation involves a US dollar account and a pair in which USD is the quote currency, such as EUR/USD or GBP/USD. Because the result is already denominated in dollars, there is no need to convert it again. For one standard lot of EUR/USD: Pip size: 0.0001 Contract size: 100,000 euros 0.0001 × 100,000 = $10 per pip The calculation produces 10 units of the quote currency. As USD is both the quote currency and the account currency, the pip value is $10. This figure remains fixed for one standard lot regardless of whether EUR/USD is trading at 1.10, 1.15 or another price. The same calculation scales directly with the position size. A 0.1-lot position is worth approximately $1 per pip, while a 0.01-lot position is worth approximately $0.10 per pip. This is why USD-quoted pairs provide the most straightforward pip-value calculation for a dollar-based account. When USD appears first in the pair, the initial calculation produces a value in the quote currency rather than dollars. USD/JPY is a useful example because its pip sits in the second decimal place and the first stage gives the result in Japanese yen. Using an illustrative USD/JPY rate of 157.41, derived from the ECB's euro reference rates on 4 August 2026, the calculation for one standard lot is: Pip size: 0.01 Contract size: 100,000 US dollars First, calculate the pip value in yen: 0.01 × 100,000 = ¥1,000 per pip The ¥1,000 must then be converted into US dollars by dividing it by the USD/JPY exchange rate: ¥1,000 ÷ 157.41 = approximately $6.35 per pip For smaller positions, the same result scales down to approximately $0.64 per pip at 0.1 lot and $0.06 per pip at 0.01 lot. These values move slightly whenever USD/JPY changes because the fixed ¥1,000 pip value is being converted back into dollars at a floating exchange rate. This is the calculation behind the approximate JPY figures in a pip-value table. It is also why assuming that every standard lot is worth exactly $10 per pip can leave a trader with the wrong risk figure. Cross pairs require an extra step because the account currency may not appear anywhere in the pair. The method is to calculate the pip value in the quote currency first and then convert that amount into the currency of the trading account. Consider one standard lot of EUR/GBP held in a US dollar account. The pip size is 0.0001 and the contract contains 100,000 euros: 0.0001 × 100,000 = £10 per pip The initial pip value is £10 because GBP is the quote currency. It must now be converted into dollars. On 4 August 2026, the ECB reference rates were approximately EUR/USD 1.1515 and EUR/GBP 0.85639, giving an illustrative GBP/USD cross rate of: 1.1515 ÷ 0.85639 = approximately 1.3446 US dollars per pound The final conversion is therefore: £10 × 1.3446 = approximately $13.45 per pip At 0.1 lot, the approximate value would be $1.35 per pip, while at 0.01 lot it would be roughly $0.13 per pip. If the account were denominated in pounds, the calculation would stop at £10 because no further currency conversion would be needed. Most modern trading platforms calculate pip values automatically, and nobody receives a medal for doing every sum by hand. The practical value of understanding the formula is that you can check whether the platform figure, position size and cash risk all make sense before placing the trade. Pip calculations for gold and Japanese yen pairs often cause confusion because neither follows the four-decimal format used by pairs such as EUR/USD. Gold deserves particular care because XAU/USD has no single, universally accepted pip definition: some brokers treat a $0.01 movement as one pip, while others use $0.10. For this reason, traders should always check the contract specification shown on their own platform. A confident-looking calculation is not much use if it is based on a different broker's definition. Gold is usually traded as XAU/USD, with the price showing how many US dollars are required to buy one troy ounce of gold. On many MT4 and MT5 accounts, one standard lot of XAU/USD represents 100 troy ounces. Using the common convention that a $0.01 movement equals one pip, the standard-lot calculation is: $0.01 × 100 ounces = $1 per pip If gold rises from $4,062.05 to $4,062.06, that is a $0.01 movement. At one standard lot, the movement would be worth $1. For a 0.01-lot position, the contract represents one ounce: 100 ounces × 0.01 lot = 1 ounce The pip-value calculation is therefore: $0.01 × 1 ounce = $0.01 per pip Under this convention, a 50-pip movement, equivalent to a $0.50 change in the gold price, would be worth $0.50 at 0.01 lot. Some platforms instead describe a $0.10 gold movement as one pip. Under that convention, one pip would be worth $10 at one standard lot and $0.10 at 0.01 lot. The underlying profit or loss does not change; only the terminology used to describe the movement does. This is why the safest approach is to check three details before trading gold: Gold was trading around $4,062 per ounce when these examples were prepared on 31 July 2026, although the calculation works in exactly the same way at other market prices. (Reuters) JPY currency pairs are normally quoted to two or three decimal places. The second decimal position is the pip, while the optional third decimal represents a pipette. Consider USD/JPY moving from 159.90 to 160.20: 160.20 − 159.90 = 0.30 Because one pip in a JPY pair equals 0.01: 0.30 ÷ 0.01 = 30 pips USD/JPY has therefore risen by 30 pips. If the platform displayed the prices as 159.900 and 160.200, the third decimal would show pipettes, but the movement would still equal 30 full pips. In a USD account, the cash value of a USD/JPY pip is usually lower than the familiar $10-per-pip value of EUR/USD at one standard lot. The reason is that the initial pip value, ¥1,000 at a standard lot, must be converted back into US dollars at the current USD/JPY rate. As the exchange rate changes, so does the dollar value of that ¥1,000. For this reason, the pip value of a JPY pair should be checked rather than assumed before calculating a position size. A pip is the standard unit used to describe price movement in forex. It normally sits in the fourth decimal place for most currency pairs and the second decimal place for JPY pairs. A pipette is one-tenth of a pip. It appears in the fifth decimal place on most pairs or the third decimal place on JPY pairs. Many trading platforms display this final digit in smaller or superscript text to distinguish it from a full pip. For example, if EUR/USD moves from 1.15060 to 1.15061, the change is one pipette rather than one full pip. Ten movements of this size would equal one pip. The term point can be less consistent. On many forex platforms, a point means the smallest price increment displayed, which is usually the same as one pipette on a five-decimal quote. In stock-market language, however, one point normally means a full one-unit movement in the quoted price, such as an index rising from 7,500 to 7,501. In simple terms, traders usually discuss market distance in pips, while platforms may use points or pipettes to display more precise pricing. Checking how your platform defines a point prevents a tenfold error when entering a stop-loss or interpreting an automated trading rule. Pips become useful when they are converted from a measure of market movement into a measure of financial risk. Traders can use them to define a stop-loss distance, calculate an appropriate position size and compare the potential reward with the amount being risked. A stop-loss should not be placed at an arbitrary distance simply because the number looks comfortable. The stop should first be positioned according to the market structure or trading setup, with that distance then measured in pips and converted into money. Suppose a trader buys EUR/USD at 1.1500 and places a stop-loss at 1.1475: 1.1500 − 1.1475 = 0.0025 0.0025 ÷ 0.0001 = 25 pips The stop-loss distance is therefore 25 pips. If the trader opens a 0.1-lot position, each pip is worth approximately $1: 25 pips × $1 per pip = $25 Ignoring slippage, the spread and any commission, approximately $25 is at risk if the stop-loss is triggered. This is the point of converting the stop into pips: a line on a chart becomes an amount of money that can be compared with the account balance. Position sizing determines how many lots can be traded without exceeding a chosen monetary risk. The correct formula is: Position size in lots = risk amount ÷ (stop-loss distance in pips × pip value per standard lot) The brackets matter. The stop distance must be multiplied by the pip value before the risk amount is divided by the result. Consider this illustrative example: First, calculate the amount that would be at risk when trading one standard lot: 40 pips × $10 = $400 Next, divide the permitted risk by that amount: $100 ÷ $400 = 0.25 lots The calculated position size is therefore 0.25 lot. At this size, each pip is worth approximately $2.50: $10 × 0.25 = $2.50 per pip A 40-pip loss would then equal: 40 × $2.50 = $100 The calculation brings the example back to the original 1% risk limit. In practice, the precise tradable volume may need to be rounded down to the nearest increment supported by the platform. I run every potential trade through this pips-to-money conversion before placing it. Position size is calculated from the permitted risk; it is never something I decide by feel because the setup "looks good". A profit target can also be measured in pips. Comparing the target distance with the stop-loss distance gives the trade's potential risk-reward ratio: Risk-reward ratio = target distance in pips ÷ stop-loss distance in pips If a trade has a 40-pip stop-loss and an 80-pip profit target: 80 ÷ 40 = 2 The potential reward is twice the amount at risk, giving a 2:1 reward-to-risk ratio. In the previous example, risking $100 would therefore correspond to a potential gross profit of approximately $200. A 2:1 ratio is a commonly discussed benchmark, but it should not be forced onto every setup. Market structure, volatility, trading costs and the realistic probability of reaching the target all matter. A large target is not automatically better if price is unlikely to reach it. These calculations also exclude the possible effects of spread widening, commission, overnight charges and slippage. The final loss can therefore differ slightly from the simple pip calculation, particularly in fast-moving or illiquid markets. The principles behind choosing a technically sensible stop are covered in our stop-loss guide, while the broader process of selecting and testing a trading approach is explained in our forex strategy guide. Read more：What is a stop-loss order and how to set it Read more：Best trading strategy guide: What every trader needs to know The answer depends on the platform convention: some brokers define a $0.01 gold movement as one pip, while others use $0.10. If one standard lot represents 100 ounces, every $0.01 movement is worth $1 per standard lot or $0.01 at 0.01 lot. It depends on the currency pair and lot size. For a USD-quoted pair such as EUR/USD, $1 represents 10 pips at 0.01 lot, while at one standard lot, $1 is equal to only 0.1 pip. For USD-quoted pairs such as EUR/USD and GBP/USD, one pip is worth approximately $0.10 at 0.01 lot. JPY pairs and gold use different calculations, as shown in the conversion table above. For most forex pairs, 100 pips represents 0.0100, which is one cent of exchange-rate movement. Its monetary value still depends on the contract size; for example, 100 pips on EUR/USD is worth approximately $10 at 0.01 lot but $1,000 at one standard lot. A pip is the standard unit traders use to describe forex price movement. A point usually means the smallest increment displayed by a platform, often one pipette or one-tenth of a pip, although terminology can vary. "Pips" is the plural of pip, the standard unit used to measure movement in forex prices. On EUR/USD, one pip is worth approximately $10 at one standard lot, with values for other lot sizes shown in the conversion table. Pips are units used by forex traders to describe the distance a price has moved. A 50-pip rise means the market has advanced by 50 standard units, but the cash value depends on the pair and position size shown in the table above. No. Most currency pairs use the fourth decimal place as one pip, while JPY pairs use the second decimal place, and gold follows broker-specific platform and contract conventions. A pip is the unit that converts forex price movement into real money. The three things to remember are where the pip sits in the pair's quote, what one pip is worth at your chosen lot size, and how much your stop-loss distance represents in cash. The conversion table offers a quick reference, while the formula allows you to verify the figure by hand whenever necessary. For me, a moving quote is just a stream of numbers until it is multiplied by the pip value. Establish what every pip is worth first; then you can begin talking sensibly about risk, position size and trading strategy. Lee W. is a seasoned professional trader with over 10 years of experience. Passionate about sharing valuable expertise and unique market insights, Lee W. now serves as an external and independent market analyst for RADEX MARKETS. Reviewed by RADEX MARKETS Risk Warning: Trading derivatives and leveraged products carries a high level of risk, including the risk of losing substantially more than your initial investment. Related concepts:

It may have taken seventeen years, but platinum has finally beaten its long-standing record high established back in 2008, pushing beyond $2,300 per ounce as of this morning. The precious metal has gained a staggering $700 over the last two weeks and is now up 160% since the start of the year, beating the rallies in gold and silver. Speaking of which, gold ventured over the $4,500 mark earlier today, exploring new territory and adding another significant milestone to this year’s accomplishments. Silver meanwhile blasted through $70 per ounce yesterday, closing the day over $71 per ounce and pushing even higher this morning. Precious metals have exceeded all expectations this year, and continue to surprise even the most fervent of gold bugs. With one week to go before the end of the year, the question on everyone’s mind is how much higher metals can go in 2025. The latest US GDP figures, published yesterday, revealed that the American economy grew by 4.3% in the third quarter – the fastest rate of growth in two years. The acceleration was largely driven by consumer spending, but also by a smaller trade deficit due to an increase in US exports. The data thoroughly outpaced economists’ predictions of 3.3% and came as a pleasant surprise to US stocks, pushing the S&P 500 to a fresh record high. The latest figures carried over to the crude oil markets, which are in the midst of a rebound following last week’s lows. The Brent benchmark crept back over $62 a barrel yesterday, while WTI managed to reclaim $58. #Platinum #Gold #SPX

Precious metals are pumping across the board. Gold wasted no time pumping straight to $4,400 per ounce this morning, surpassing its previous record high established back in October. It was not alone. Silver reached all the way up to $69 per ounce within hours of the opening bells across Asia, pushing even further into record high territory. The white metal is up a staggering 140% since the start of the year, and is by no means alone. After breaching $2,000 last Friday, platinum blasted straight out of the gate this morning, moving up to $2,100 per ounce. Platinum is up over 130% since January and is now only $200 away from beating its previous all-time high of $2,300 per ounce, recorded back in 2008. As if that were not enough, palladium also continued its ascent this morning, reaching to $1,850 and beyond, meaning the metal has joined silver and platinum in doubling since the start of the year. The drama in precious metals appears to be relatively self-contained for the time being, with markets further afield remaining unaffected. Christmas is only a few days away, and the economic calendar is as barren as one would expect. With regard to the US economy, Tuesday has a couple of meagre offerings in the form of the ADP employment change and heavily delayed Q3 GDP figures, while the latest jobless claims arrive early this week on Wednesday. Other than that, there is very little to whet the appetite this week; the earnings calendar is equally mundane. With the Christmas break just around the corner, traders understandably have their sights on matters closer to home. Markets around much of the world will shut down on Thursday and Friday for Christmas and Boxing Day, while US markets will close for half a day on Wednesday but reopen on Friday. #Gold #Silver #Metals

The trade plan was sound. The stop-loss was respected at exactly the level it was set. The account still came out four pips worse than any calculation made before entry. That gap is slippage, and it carries a cause and a price tag. This guide sets out what slippage is, why it appears, when it appears, what it costs once converted into cash, and which of the available defences genuinely reduce it. Slippage is the difference between the price you expect a trade to be executed at and the price it actually fills at. It runs in both directions: a buy order expected at 1.0902 that fills at 1.0900 has slipped two pips in your favour, and the same order filling at 1.0904 has slipped two pips against you. On a standard lot of EUR/USD, each of those pips is worth $10. Ready to trade with execution you can measure? Open your Radex Markets account today. The term “slippage” refers to the change in execution price between the moment an order is placed and when it is filled by the market. It appears in any market where quotes move and orders have to be matched against real counterparties, which makes it as present in equities and futures as it is in forex. The mechanism sits in the gap between sending and matching. An order leaves the platform as an instruction to fill a certain size. By the time that instruction reaches the point of matching, the quotes standing behind it have updated and other orders have consumed part of the volume that was resting at that price. What is left decides the fill, which may be the requested price or the next one along. Slippage is measured in two ways, and the two produce different numbers for the same fill. Measured against the mid price at the moment the order was sent, the figure includes half the spread and tends to look larger. Measured against the executable price at that same moment, meaning the actual ask that could have been bought at, the figure isolates the movement that happened during execution. Broker execution statistics normally use the second definition, so a fill reported as 1.4 pips of slippage on one measure can be quoted as 0.5 pips on the other. Anyone comparing execution quality between two venues needs to check which measure each one is using before drawing a conclusion. Market matching produces slippage on its own, without anyone intervening. Execution quality still changes the size of it: how fast an order is routed, how many liquidity providers are quoting, and how deep those quotes are all decide whether the next available price is one pip away or fifteen. In my own records the difference between a good execution window and a poor one on the same pair has been consistently larger than the difference between two brokers, which is why I spend more time choosing when to trade than comparing execution statistics. Slippage: the variance between an order's requested price and its executed price, expressed in pips or in the currency of the account. Many traders meet the term for the first time on a crypto exchange rather than a forex platform, and the two are not describing the same mechanism. Back in forex terms, what can be set is the maximum deviation on the platform, the order type, the position size and the moment of entry. What cannot be set is the depth of the book on the other side, and that is the thing actually deciding the fill. Slippage has direction, and the direction decides whether it adds to the result or subtracts from it. The mechanism is identical in both cases; the only difference is which side of the requested price the market was standing on at the moment of matching. Positive slippage is a fill at a better price than the one requested, meaning a buy executing lower or a sell executing higher. It appears when price is moving in the trader's direction during the fraction of a second the order is in flight, and when depth is good enough that the improved quote is still available at the moment of matching. Venues that pass on price improvement rather than keeping it will hand that difference back. A worked case: a market buy on EUR/USD for one standard lot expecting 1.0902 fills at 1.0900 after a brief dip. That is 2 pips of positive slippage. At $10 per pip on a standard lot the fill is worth $20 more than the trade that was planned, and the break-even point sits two pips closer. My own view is that positive slippage is worth recording but never worth planning around. Over a year of entries it has offset perhaps a fifth of what the negative side has taken, and it has never once arrived on a stop-loss, which is where the cost actually lands. Negative slippage is a fill at a worse price than the one requested, meaning a buy executing higher or a sell executing lower. Traders feel this version far more often than its counterpart, and the reason is structural rather than unlucky. Stop-losses trigger precisely when price is running hard in one direction and the book on the other side has thinned out. The order arrives at the worst possible moment by design, because the condition that fires it is the same condition that empties the depth. A worked case: a long EUR/USD position of one standard lot entered at 1.0870 with a stop at 1.0850, planning a 20-pip risk. A release pushes price through the level and the stop fills at 1.0846. The realised loss is 24 pips rather than 20, which at $10 per pip is $240 instead of the $200 the position was sized for. The trade took 20% more risk than the plan allowed, and no part of the plan was executed incorrectly. The lesson that cost me the most to learn is that this does not average out. A run of ordinary trades can look fine while one gapped stop quietly undoes a fortnight of them, so I now size positions against the worst fill I have seen on that pair rather than against the level I set. No slippage refers to situations where the execution price exactly matches the requested price. It is a frequent outcome rather than a theoretical one, and it depends on four conditions holding at the same moment. What cannot be done is to guarantee the outcome in advance. Any claim that an account or a platform never experiences slippage deserves scepticism, because the claim is about market matching rather than about the platform. A guaranteed stop is the one instrument that fixes an exit price, and it does so by having a counterparty carry the execution risk for a premium, which is a different thing from removing slippage. The everyday version looks like this: 0.1 lots of EUR/USD on a buy limit at 1.0900 during a quiet Asian session, where the top of the book holds many multiples of that size and the pair has moved under 15 pips in three hours. That order fills at 1.0900 nearly every time, because nothing in those conditions can push it past the level. Slippage is not spread evenly across the week; it concentrates into particular market conditions and time windows. Recognising those conditions is what turns slippage from bad luck into a scheduling decision. Every cause below reduces to the same sentence: at the price requested, there was not enough volume available to fill the order. The five routes to that condition are different, and so are the defences against them. On a major release, quotes reprice several times within the first second and the level on screen is gone before the order arrives. A surprise against the forecast can move a major pair 40 to 80 pips in under a minute, and the first few of those pips come out of the fill rather than out of the market. The releases that do this most reliably: When the book is thin, an order works down through progressively worse levels until it is filled. Volatility does not need to be involved at all. The same 1-lot order on the same pair can cost nothing at 14:00 London time, when London and New York are both trading, and 2 to 3 pips at 23:00, when neither is. Nothing about the pair changed; the number of participants quoting it did. Late evening is where most of the slippage I have paid for was collected, and the trades I was taking in that window were rarely the ones worth taking. Read more：What is liquidity in Forex and how is it measured The market reopens past a whole range of prices, so no trade occurred at the requested level and none could have. A stop sitting inside a gap is executed as a market order at the first price that does exist on the other side. No platform setting prevents this outcome. A maximum deviation limit will reject the order rather than improve it, which on a stop-loss leaves the position open in a market that has already moved. A market order buys certainty of filling and pays for it in price. A limit order buys certainty of price and pays for it in the risk of not filling. The choice is which of the two certainties to give up, and wanting both is not on the menu. Volatility and thin depth usually arrive together, and when they do the spread pulls apart before anything else happens. A pair quoted at 0.6 pips in normal conditions can trade at 5 pips or wider in the seconds after a release, which pushes the execution price away from expectation before the market itself has moved at all. Those five causes concentrate into four windows. High-impact data releases are the sharpest: quotes reprice within seconds and depth vanishes entirely, making this the highest exposure of the week. The market open and close carry high exposure for a different reason, as liquidity rotates between sessions and the book is briefly held up by fewer participants. Late New York and public holidays sit at moderate to high, with thin books and spreads that stay wide for hours rather than seconds. The weekend reopen is the highest exposure of all for anyone holding a position, because everything that happened while the market was closed arrives as a single movement. An economic calendar turns three of those four into something that can be marked in advance. Filtering it to high-impact events for the currencies actually traded, noting the release times in local time, and treating the five minutes either side of each one as closed for new orders removes most of the exposure. The weekend reopen is handled by position size instead, because timing cannot help once the market is shut. I stop placing orders at 21:00 London time and do not place another until the London open. That single rule has done more for my execution than any change of platform. Slippage equals the fill price minus the expected price, positive on a buy meaning more was paid than intended, and reversed on a sell. Converting that difference into money takes three steps. Step 1 — Price difference into pips: for pairs quoted to four decimal places, one pip is 0.0001; for yen pairs quoted to two decimal places, one pip is 0.01. Step 2 — Pips into cash per lot: pips × pip value of the pair. Step 3 — Cash per lot into total cost: cash per pip × number of lots. Slippage cost = (fill price − expected price) in pips × pip value × lots A minimal substitution: a EUR/USD buy expected at 1.0900 fills at 1.0903. The difference is 0.0003, which is 3 pips. At $10 per pip on one standard lot, that fill cost $30 more than the trade that was planned. The same slippage in pips costs proportionally more as size grows, and the spread between the smallest and largest common sizes is wider than most traders expect. Three pips of slippage on EUR/USD costs $3 at 0.1 lots, $15 at 0.5 lots, $30 at 1 lot and $150 at 5 lots. A trader who grows from half a lot to five lots has multiplied the cost of every future slippage event by ten without changing a single thing about how they trade, which is why the same execution habits that were affordable at small size stop being affordable later. Slippage belongs in the same column as the spread and any commission, and it is the only one of the three that never appears on a pricing page. A strategy running on 0.8 pips of spread that averages 0.4 pips of slippage per round trip is actually paying 1.2 pips, which is 50% more than the figure it was backtested against. That single omission explains a large share of the gap between a backtest that looked viable and a live account that does not. Running the formula through one complete trade. Setup. A short EUR/USD position of 2 standard lots entered at 1.0920, with a take-profit at 1.0870 and a stop at 1.0945. The trade is planned as 50 pips of reward against 25 pips of risk, a ratio of 2:1. The slippage event. Price runs the wrong way through a thin late afternoon, the stop triggers, and the fill comes back at 1.0951 rather than 1.0945. Step-by-step calculation. Checking the arithmetic. The planned loss was 25 pips × $20 = $500. The realised loss was 31 pips × $20 = $620. The difference is $120, which matches the slippage cost calculated directly. Change in risk-reward. The trade was built on 2:1. With the denominator now 31 pips against an unchanged 50-pip target, the real ratio was 1.61:1. Slippage changed the structure of the trade and not only its cash result, and a strategy whose edge depends on a 2:1 ratio does not survive many of those. The same trade the other way. Had those 6 pips arrived on entry instead, filling the short at 1.0926 rather than 1.0920, the position would have opened $120 better off with the stop and target untouched. Same mechanism, same size, opposite side of the requested price. This is about what to do once slippage has already happened, which is a different problem from reducing it next time. Three things need establishing immediately: the actual fill price, whether real risk now exceeds what the position was sized for, and how far the risk-reward ratio has moved. Until those are known, any decision about the trade is being made against numbers that are no longer true. From there, three responses are available and each suits a different situation. When unusual slippage happens repeatedly rather than once, the response is different again: stand down, review execution quality against the two measurement baselines, and check whether the trading window itself has been the problem all along. A run of bad fills in the same hour of the day is not an execution problem, it is a scheduling one. My own first action after a large slippage event is to write the intended price and the realised fill side by side in the trade log before doing anything else. It takes fifteen seconds and it stops the next decision being made from memory, which in my experience is always more generous than the record. Every order type answers one question: certainty of filling, or certainty of price? Slippage exposure follows directly from the answer, which makes order selection the most direct control a trader has. The stop-limit deserves its own paragraph, because it is the order most often reached for and most often misunderstood. Setting a stop at 1.0850 with a limit at 1.0840 instructs the platform to sell anywhere in that 10-pip band and nowhere below it. If price trades through the band in one move, the order does not fill and the position stays open, still losing. That trade-off is worth taking when the downside of a bad fill is larger than the downside of staying in, which in practice means orderly markets, positions small enough to exit manually, and levels where price is likely to pause. It is worth avoiding through weekend gaps and scheduled releases, where the whole reason for setting a stop was the scenario in which the band gets skipped. The guaranteed stop is the only row in the table carrying no exposure, and the reason is that the exposure has been transferred rather than removed. A counterparty commits to the stated exit price regardless of what the market does in between, and charges a premium for accepting that risk. Nothing about the market has changed; the question is only whether that premium is cheaper than the fill that would otherwise have happened. Read more：Types of Forex Orders: Master the 7 Types Like a Pro Read more：What is a stop order? Types, examples and how to set one Slippage cannot be eliminated, and any approach built on the assumption that it can will fail at the exact moment it matters. What follows reduces exposure, which is a smaller claim and an achievable one. Place no new orders in the five minutes before a high-impact release, and wait 15 to 20 minutes after it before treating quotes as reliable again. The first move after a release is frequently reversed once the detail is read, and the spread usually needs that long to return to its normal band. This is the rule that has saved me the most money and the one I broke most often when starting out, because standing aside during the most interesting minutes of the day never feels like a decision at the time. Depth differences between pairs show up directly in the fills. EUR/USD, USD/JPY and GBP/USD carry the bulk of daily turnover and quote tightly for most of the trading day, while crosses and exotics can be five to ten times thinner at the same moment. Slippage on an exotic during a quiet hour is often larger than slippage on a major during a release. A limit order converts price risk into the risk of not being in the trade at all. That is a good exchange for entries, where missing one setup costs nothing and a bad fill costs real money on every unit of size. It is a poor exchange for exits. A limit on a stop-loss can leave a position open while it is still moving against the account, which is the one outcome a stop exists to prevent. Limits for getting in, market orders or guaranteed stops for getting out, is the division I have settled on and have not had reason to revisit. Read more：Limit Orders in Forex: Where to Place Buy and Sell Limits Slippage grows when an order is large relative to what is resting at the top of the book. The test is straightforward and runs on existing fill records: if 1-lot orders fill at the quoted price while 5-lot orders come back a pip or two worse in the same conditions, size has crossed the depth available and the account is now paying for the privilege of moving the market. A guaranteed stop closes at the price set regardless of gaps, charged either as a wider spread on entry or as a fee when the stop is triggered. The arithmetic decides it. If the premium is 2 pips and the position is being held through a central bank decision that has produced 60-pip gaps before, the cost is trivially worth paying. On an intraday trade in an orderly session, where realistic slippage is under a pip, the same premium is twice the expected cost of insuring against something that will not happen. Read more：What is a stop-loss order and how to set it A weekend gap is the hardest slippage to defend against, because there is no continuous price for a stop to work on. Everything that happened between Friday's close and Sunday's open arrives as one movement, and the stop executes at the first price on the other side of it. If a position genuinely has to be held, size is the only lever left. Running half the usual position through the weekend keeps the cash exposure of a 50-pip gap at the level normally accepted from a 25-pip move. I hold over the weekend perhaps twice a year, and each time it has been for a reason I could write down before Friday's close rather than a position I simply had not closed. Read more：Best time to trade forex: When to enter the market during the day If slippage cannot be removed, is there anything about it that can be used? The honest answer has two halves. What can be used: What it costs: On balance slippage is a cost, not an opportunity. The point of the first list is that it can be read and worked with rather than only endured; the point of the second is that nothing in the first list outweighs it. My own position is that slippage is best treated as a tax whose rate is partly under my control: I cannot refuse to pay it, but I decide how much of the year I spend in the brackets where it is highest. Slippage happens when a trade fills at a different price than expected due to fast market movements or low liquidity. It cannot be avoided completely, but it can be minimised with the right tools and habits. Three actions do most of the work: choose the window by staying out around high-impact releases, choose the order type by using limits where price matters more than speed, and size the position against the depth actually available on that pair. Slippage is calculated as the difference between the expected execution price and the actual fill price of a trade. To turn that into money, convert the difference into pips, then multiply by the pip value of the pair and the number of lots. A EUR/USD fill 3 pips worse than expected on 1 standard lot costs 3 × $10 = $30. Slippage in forex is the difference between the price expected when a currency order was sent and the price it actually filled at. It appears when quotes move between the order being sent and matched, or when there is not enough volume resting at the requested price. Slippage runs in both directions: positive slippage gives a better price than requested, negative slippage costs more. Traders notice the negative version more often because it concentrates on stop-losses, which trigger precisely when liquidity is thinnest. On major pairs in normal conditions, slippage is usually a fraction of a pip and often zero. Around high-impact releases or weekend gaps it can be several times larger. Persistently large slippage in ordinary conditions is a reason to review execution quality rather than market conditions. A limit order guarantees the fill will not be worse than the price set, which removes negative slippage at that level. The cost is that the order may not fill at all if price never returns, so price risk has been exchanged for execution risk. Slippage tolerance is the maximum price deviation a trader is willing to accept before an order is rejected. The term is most common on crypto exchanges, where it is set as a percentage; forex platforms express the same control as a maximum deviation in points. Slippage is the gap between the price requested and the price received. It has three directions, five causes that all reduce to insufficient volume at the requested price, four windows where it concentrates, a cost that can be calculated to the dollar before a trade is placed, and a different exposure for every order type. Four tests cover almost all of it. Check the calendar before placing an order and stand down for five minutes either side of a high-impact release. Use limits to get in and market orders or guaranteed stops to get out. Watch whether larger orders fill worse than smaller ones, and treat that as the ceiling on size. Add average slippage to the spread when judging whether a strategy actually pays. The habit that changed the most for me was writing the realised fill next to the intended price in the trade log, every time, including the trades that worked. Two months of that turned slippage from something I complained about into a number I knew, and the number turned out to be concentrated in a window I could simply stop trading. The RADEX MARKETS editorial team consists of seasoned financial professionals and market observers. Dedicated to delivering objective market summaries, macroeconomic insights, and educational content, the team strives to keep traders well-informed in a fast-paced financial environment. Reviewed by RADEX MARKETS Risk Warning Trading derivatives and leveraged products carries a high level of risk, including the risk of losing substantially more than your initial investment. Related concepts:

The rally in platinum continued yesterday, pushing the metal to within touching distance of $2,000 per ounce and matching its 2008 price tag. Platinum has now doubled since the start of the year, an accolade also achieved by silver earlier in the month, but the precious metal may not be the last. The club has a couple of weeks left to welcome a third member into its ranks, this time in the form of palladium, which surpassed $1,750 yesterday and is up 90% so far this year. Gold came close to another record high on Thursday, but ultimately fell short, settling to a minor loss at $4,332 per ounce by the daily close. Markets received a surprising update yesterday when the Bureau of Labor Statistics revealed a significant slowdown in US inflation. Year-over-year inflation was expected to hit 3.1% in November, but the official figure came in at just 2.7%. Core inflation, which excludes the more volatile components such as energy and food, lowered to 2.6%, falling far short of expectations of 3.0%. The unexpected figures buoyed US stock markets, lifting the Dow, S&P 500 and Nasdaq to positive daily closes. It is still too early to be thinking about the next move by the Federal Reserve, but should inflation continue to show signs of abating, it will open the door for future rate cuts on the dollar, which are currently not expected until March at the earliest. The Bank of Japan raised the interest rate on the yen to a 30-year high of 0.75% this morning. The move was widely expected and provoked little to no reaction in currencies or in financial markets in general. The central bank is expected to continue raising rates into next year, a shift that will eventually impact the relative value of the yen, which now sits at decade-lows against most major currencies. Low rates have made the Japanese yen very attractive as a source of cheap financing in recent years, but such a model could quickly disappear if the BoJ keeps closing the gap between the yen and the dollar. #Platinum #Inflation #JPY