Slippage is one of the most discussed topics in Forex trading, especially during periods of high market volatility. For traders using Exness, understanding how slippage works and how the broker manages fast-moving markets is essential for effective risk control. This guide explains what slippage is, why it happens, and how Exness uses advanced execution technology, deep liquidity, and transparent pricing to protect traders when volatility spikes in major Forex sessions and news events.
Understanding Slippage in Forex Trading
Slippage occurs when a trade is executed at a price different from the one requested by the trader. This typically happens in fast-moving markets where prices change within milliseconds.
In Forex, slippage can be either negative or positive. Negative slippage means the execution price is worse than expected, while positive slippage results in a better-than-requested entry or exit. Slippage is not a broker error by default; it is a natural consequence of market dynamics, especially during high-impact news releases or low-liquidity conditions.
Common Situations That Cause Slippage
Slippage often appears during major economic announcements, such as interest rate decisions or Non-Farm Payrolls. It can also occur at market open, during session overlaps, or when trading volatile instruments like XAUUSD or major currency pairs.
Another common cause is low liquidity. When there are fewer buy or sell orders available at a specific price level, orders may be filled at the next available price, resulting in slippage.
Is Slippage Always a Bad Thing?
Many traders associate slippage only with losses, but this is a misconception. Slippage reflects real market execution and can work in favor of the trader.
Positive vs Negative Slippage
Positive slippage occurs when the market moves in your favor between order placement and execution. For example, a buy order may be filled at a lower price than requested. Negative slippage happens when the market moves against you.
With Exness, both types of slippage are possible due to market execution, which means orders are filled at the best available price without dealer intervention.
Why Market Execution Matters
Market execution ensures transparency. Unlike instant execution, which may cause requotes, market execution fills orders at real market prices. This model is widely preferred by professional traders because it reflects true liquidity conditions.
How Exness Handles Slippage During Volatile Markets
Exness is known for its strong infrastructure designed to minimize execution delays and manage volatility efficiently.
Advanced Trading Technology and Infrastructure
Exness operates high-performance trading servers with ultra-low latency. Orders are processed within milliseconds, reducing the time gap between order submission and execution. This significantly lowers the probability of excessive slippage during fast markets.
The broker also uses smart order routing to connect traders to multiple liquidity providers. This ensures access to deeper liquidity pools, even during periods of high demand.
Deep Liquidity and No Dealing Desk Model
Exness follows a No Dealing Desk (NDD) model, meaning trades are passed directly to liquidity providers. There is no manual intervention, price manipulation, or artificial delay.
This approach allows Exness to offer transparent execution where slippage reflects actual market conditions rather than broker-side adjustments.
Volatility Protection Features at Exness
Beyond execution speed, Exness provides several risk-management features that help traders navigate volatile conditions safely.
Negative Balance Protection
One of the most important protections offered by Exness is Negative Balance Protection. Even during extreme volatility, traders cannot lose more than their deposited funds. This feature is especially valuable during unexpected market gaps.
0% Stop Out Level
Exness offers a 0% stop out level on many account types. This allows traders to keep positions open longer during drawdowns, giving trades more room to recover instead of being force-closed prematurely during temporary price spikes.
Unlimited Leverage with Risk Awareness
Exness provides unlimited leverage on eligible accounts, allowing traders with small capital to participate in the market. However, leverage should be used cautiously, especially during volatile periods, as it amplifies both profits and losses.
How Traders Can Reduce Slippage on Exness
While slippage cannot be eliminated entirely, traders can take practical steps to minimize its impact.
Trade During High-Liquidity Sessions
The London and New York sessions typically offer the highest liquidity and tighter spreads. Trading during session overlaps reduces the likelihood of sharp price jumps.
Use Pending Orders Strategically
Pending orders such as Buy Limit or Sell Limit allow traders to define acceptable price levels. While slippage can still occur, these orders help maintain better control compared to market orders during news events.
Monitor Economic Calendars
Avoid entering trades just before major economic releases unless volatility is part of your strategy. Exness provides access to market news and tools that help traders stay informed.
Why Exness Is Trusted in Volatile Markets
Exness is regulated by reputable authorities such as the FCA and CySEC, reinforcing its commitment to transparency and fair trading. Being trusted in demanding markets like Japan further demonstrates the broker’s operational stability and execution quality.
Professional traders appreciate Exness for its instant withdrawals, robust risk protection, and reliable execution during both calm and turbulent market conditions.
Conclusion
Slippage is a natural part of Forex trading, especially in volatile markets, but it does not have to undermine your trading performance. With advanced infrastructure, deep liquidity, market execution, and strong risk-protection features, Exness handles volatility in a transparent and trader-friendly way. For those looking to experience real-market conditions safely, practice your strategies on an Exness Demo account and build confidence before trading live.