# What’s slippage?
Slippage, also known as slippage. It refers to a phenomenon in which the designated trading point placed by the client is significantly different from the actual trading point when the transaction is in progress.
# Causes of slippage
Slippage is a normal phenomenon in the trading process, mainly occurring in the market liquidity or market conditions of severe fluctuations in the trading hours, which is manifested in the form of network delays, buyers and sellers quotes and the size of the transaction can not be quickly reached to match the current quotes and the actual trading points there is a large gap.
#PGM Warm Tips
1 There is no perfect market can completely avoid slippage, investors are particularly important to the choice of platform.
The more liquidity a trading platform matches, the less likely there is to be slippage.PGM started its main institutional business in 2015, providing quotes to over 60 traders with a wealth of liquidity provider resources. It is able to sift through thousands of liquidity providers to find the best price to match your order.
2 The more advanced the platform’s server technology, the more slippage caused by network latency can be avoided.
PGM transaction server is located in London and New York, can make full use of the local financial resources and technological advantages for investors to create a fast and stable trading environment; node servers set up in Dubai and Singapore to cover the Middle East and Asia; the main transshipment nodes are located in Hong Kong, Tokyo, Shanghai and other financial centers in Asia. We execute orders within 0.25 seconds on average, and can execute 5,000 orders per second, fully able to commit to let investors easily enjoy the conditions of institutional trading.
3 Select the type of account that is right for you at PGM.
PGM has two types of accounts depending on the investor’s personal needs, investment objectives and financial background: ECN accounts provide a large amount of liquidity for users with a certain level of trading experience, and investors have direct access to the quotes and execution systems of global liquidity providers; STP accounts are selected from a number of liquidity providers, and are suitable for investors with a smaller trading volume.
4 Carefully set automatic pending orders or stop loss price to avoid black swan events.
In 2015 the Swiss central bank suddenly removed the floor on the euro against the Swiss franc, resulting in a sharp spike in the Swiss franc exchange rate, retail traders, traders, institutions, and dealers holding positions in the Swiss franc were almost instantly blown out of their positions and forced to close them, resulting in a significant reduction in liquidity. The price jumped instantly, and the position was blown without triggering the stop-loss price.
5 A sharp drop in trading volume when major economic data is released has a high potential for slippage.
In the non-farm payrolls data, inflation data, the Federal Reserve interest rate resolution and other important economic data before and after the announcement, the market may instantly occur great fluctuations, it is difficult to avoid slippage phenomenon. pgm suggests that investors in the data before the announcement of the clearance of the position to wait and see, to be the market shows a clear trend and then enter the market; if you have a greater certainty, but also make sure to pay attention to the trading account in the margin is sufficient.