To begin with let me define what officially (as per NFA) an asymmetric slippage is. It is the process of taking undue advantage by confirming orders a few notches away from the prevailing market price. This can be understood by the following example:
Consider that a buyer places a market sell order for EURUSD @ 1.38585 and the order gets executed at 1.38582
Similarly, a market buy order for EURUSD quoting @ 1.38585 gets executed at 1.38588.
If it happens consistently then it means that concerned broker rips you with asymmetric slippage. The usual explanation given to client is that price has changed from the time a client clicks mouse and the time of actual execution of trade. If that is so then at least once we should see a better price. Statistically speaking 50% of the order should be executed as above and 50% in favor of a trader. However, it is always the client who loses. If this is what you experience then you need to seriously check it out with your broker. Imagine such transactions happening millions of times a day. These nickles and dimes from each trade adds up to millions for forex brokers and liquidity providers at the end of the day. Have you faced that with any broker? Pls., share experience without mentioning name.
Consider that a buyer places a market sell order for EURUSD @ 1.38585 and the order gets executed at 1.38582
Similarly, a market buy order for EURUSD quoting @ 1.38585 gets executed at 1.38588.
If it happens consistently then it means that concerned broker rips you with asymmetric slippage. The usual explanation given to client is that price has changed from the time a client clicks mouse and the time of actual execution of trade. If that is so then at least once we should see a better price. Statistically speaking 50% of the order should be executed as above and 50% in favor of a trader. However, it is always the client who loses. If this is what you experience then you need to seriously check it out with your broker. Imagine such transactions happening millions of times a day. These nickles and dimes from each trade adds up to millions for forex brokers and liquidity providers at the end of the day. Have you faced that with any broker? Pls., share experience without mentioning name.