Slippage and order level

[TREBOR84]

Hi there,

I am new to IG after using a free trading platform the last year or so.

Just a few questions: 

- slippage. IG say that if the execution price moves beyond their 'tolerance level' then the trade won't go ahead. What is tge tolerance level, in petcentage terms I guess?

- Order level. Is this as simple as it seems? Just set it to as close to the previous close price and once the price surpasses that level the stock is bought? 

Thanks, Robert

[Caseynotes]

1 hour ago, TREBOR84 said:

Hi there,

I am new to IG after using a free trading platform the last year or so.

Just a few questions: 

- slippage. IG say that if the execution price moves beyond their 'tolerance level' then the trade won't go ahead. What is tge tolerance level, in petcentage terms I guess?

- Order level. Is this as simple as it seems? Just set it to as close to the previous close price and once the price surpasses that level the stock is bought? 

Thanks, Robert

Hi, regarding slippage I've not heard a definitive answer to this as I think it depends on the normal liquidity of the particular market and then the available liquidity during increased volatility. So a poorly traded stock could have a greater chance of slippage than a more heavily traded index.

 The order level is right though you may be informed the chosen level is too close to current price and you could also suffer slippage if the market open is different to the close. Orders are processed on a first come first served basis and yours might be way down the list.

[TREBOR84]

Ok thanks very much guys. Have a good weekend