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Slippage Can Improve a Fill as Well as Hurt It

Slippage is not automatically a loss. It is the difference between the expected or requested price and the executed price, and that difference can be favorable or unfavorable. A broker review that counts only negative outcomes produces an incomplete picture of execution quality.

Google's slippage overview uses the same two-sided definition. FOREX.com's educational material also explains positive and negative slippage. For a buy, a lower fill than expected is positive; a higher fill is negative. The signs reverse for a sell.

Measure direction correctly

Order	Expected	Filled	Slippage result
Buy	1.1600	1.1598	+2 pips favorable
Buy	1.1600	1.1603	-3 pips unfavorable
Sell	1.1600	1.1602	+2 pips favorable
Sell	1.1600	1.1597	-3 pips unfavorable

The table assumes a four-decimal pair and excludes spread and commission. Real analysis should retain fractional pips, account currency conversion and order size. Volume-weight the result when one order creates several deals.

Good execution analysis groups fills by pair, order type, size, session and event status. Report the median, tails and share of positive, zero and negative outcomes. A single dramatic fill does not describe a distribution. Equally, an attractive average can hide rare but damaging tail events.

The current news environment is a useful classification test. Reuters reported a stronger dollar and sharp oil moves on September 14 as markets positioned for the Fed. Mark such intervals as event conditions rather than mixing them into quiet-session averages.

The September 13 weekly forex outlook provides a current view of the event calendar. It does not measure any broker's fills. Execution claims require transaction records.

The conclusion is an audit rule: define slippage from the trader's side, include favorable outcomes, and keep event and non-event samples separate. Only then does the statistic describe execution rather than frustration.