CFD traders take note. CFD Brokers may not be happy to hear about this topic at all.
Slippage in CFD trading online is a topic your CFD provider may not want to talk to you about, or be too keen to go into detail (or even mention at all in many cases).
After all, who wants to admit to costs.
This is what can happen though.
You do a trade, then you get slippage. Sometimes it’s 1 cent. No big deal.
But sometimes it’s 50c on $5 stock and this means a loss instead of a win on a trade.
Well, it could be because there was a “mistake” by the CFD provider. A mistake generally means the provider didn’t give you the price the underlying stock traded at with adequate volume. So what did they give you? A price traded later on perhaps.
So what do you do? You call them up.
Then they may either say:
1. They’ll change the price they filled you at, and that’s great with you.
2. There may be a reason why they couldn’t fill you at the price, eg their orders wre placed manually and the market was trading very quickly and couldn’t get you out at the intended price.
But remember a CFD provider ultimately has the last say. It’s in their small print in their terms and conditions. What can you do? What I’m saying is that they can do what they want… You can accept the slippage. But if it happens excessively and is not within reason, then some traders will vote with their feet, and.. change providers!
1. Take notice of your slippage (you’ll notice the big ones for sure)
2. Call up if there’s a problem in case you can change the outcome (many providers do correct these slippages, many won’t)
3. Ask yourself: is the CFD provider worth staying with?