Closing Price Discrepancy

[PGD]

Hello  -  I am presently operating a Demo account.   To-day (03.06.20) I closed a long trade  in the US stock 'Corvel Corp'  by clicking on the 'close' button. The trade was closed at 6384  - But according to the IG chart, the lowest price for this market, during the entire day was 6568     -     so why did my trade close at 6384 ?

[nit2wynit]

17 hours ago, PGD said:

Hello  -  I am presently operating a Demo account.   To-day (03.06.20) I closed a long trade  in the US stock 'Corvel Corp'  by clicking on the 'close' button. The trade was closed at 6384  - But according to the IG chart, the lowest price for this market, during the entire day was 6568     -     so why did my trade close at 6384 ?

Hi, I believe even on the Demo you can suffer Slippage.  This is where the position closes as close to the requested point when you click Close.  If the market is volatile, going up and down in the background, then Slippage is the difference between you pressing Close and the actual Order being executed.

I think.

Edited June 4, 2020 by nit2wynit

[PGD]

Thanks for your explanation - this does sound correct  - but 184 points is a lot of 'slippage !   I won't be taking off my 'L' plates just yet !

[Caseynotes]

11 hours ago, PGD said:

Thanks for your explanation - this does sound correct  - but 184 points is a lot of 'slippage !   I won't be taking off my 'L' plates just yet !

Hi, seems more likely a demo glitch, see below there is a pricing disparity between the live chart and the demo and looking back through both this asset has a very quirky chart which would indicate poor liquidity overall. 

Unfortunately slippage is one of the few things that is not shown on the demo as the demo isn't live and just assumes all orders are always filled at the quoted price.

 

[PGD]

Thanks for your explanation Casey.  Do you think that 'Slippage' may be avoided in future if I was to enter an equal and opposite trade in the same market  OR place a limit order at the current closing price - or even at a slightly better price to take advantage of the volatility in the market ?  What do you thinks ?

[Caseynotes]

10 minutes ago, PGD said:

Thanks for your explanation Casey.  Do you think that 'Slippage' may be avoided in future if I was to enter an equal and opposite trade in the same market  OR place a limit order at the current closing price - or even at a slightly better price to take advantage of the volatility in the market ?  What do you thinks ?

unfortunately slippage can't be avoided because it represents a hole in the order book, quoted prices are the next best on bid/offer, if something has happened to cause many orders to be suddenly pulled then there simply are no prices around the current level and the next best can be a very long way away. But slippage can also work in your favour, it can be positive, IG will enter you at your price 'or better', the problem is when you need to get out of a trade.