When does positive slippage occur?

Crosta

Trader
Sep 29, 2021
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Generally, traders set stop losses to reduce their risk. In this case, once the price is touched, the broker will buy or sell at the current market price, which may be above or below the client's stop price. In this case, clients may experience positive and negative slippage.

There are several situations in which positive slippage occurs:

Stop Loss Order: All stop loss orders are executed according to "market execution" and executed in VWAP. If the final price is better than the stop loss price you set, it is called positive slippage.

Limit Order: A limit order is executed at your requested price or better, in which case you will receive positive slippage. It also includes take profit orders, when the market reaches the "take profit price", the order will be executed as a limit order.

Source: http://www.forex-rebate.com