News events move markets in seconds — and in those seconds your order may fill at a worse price than you expected. That difference is called slippage. Understanding it is essential before you trade during high-impact news.
What Is Slippage?
Slippage happens when the market price moves between the moment you place an order and when it fills. It can be negative (you pay more/sell for less) or positive (a lucky better fill).
Why News Causes Slippage
- Prices jump in milliseconds on CPI, interest-rate and jobs data.
- Liquidity dries up, spreads widen, and orders queue behind each other.
- Stop-losses can fill far from their trigger price in fast moves.
How to Reduce Slippage During News
- Withdraw from the market or reduce size around scheduled high-impact releases.
- Use limit orders instead of stop-market orders where you have a trigger price.
- Add a buffer: set stops a little wider than usual around news.
- Trade during liquid sessions and avoid thin weekends.
Working With, Not Against, News
Some traders use an economic calendar to position before data, but reactions are unpredictable. A disciplined plan with defined risk beats reacting emotionally to a headline.
FAQ
Can slippage be completely avoided?
No — it is a normal part of trading, but buffers and limit orders reduce its impact.
Is slippage a scam my broker is doing?
Not necessarily; real slippage occurs in fast markets. Choose regulated brokers with transparent order execution.
Related: What Are Forex Trading Signals? and Navigating the World of Forex Brokers.
Disclaimer: Trading carries risk; educational content only.