Understanding and Reducing Slippages in Trading

What does 'Slippages' mean, and how can I minimise It?

Slippages occur when your order gets executed at a different price than your intended one. This deviation generally arises during volatile market conditions when placing market orders.

Ways to Reduce Slippages:

Opt for Limit Orders: Instead of placing market orders, we suggest using limit orders. This gives you greater control over the execution price.

Leverage Basket Orders: Implementing basket orders can substantially minimise slippages, particularly during hedging activities. For a comprehensive guide on basket orders, you can refer to this article.

Note: Do bear in mind that slippages can also transpire in low volatility scenarios where there's a significant gap between Bid and Ask prices.


    • Related Articles

    • What does switch mean?

      In mutual funds, a switch refers to the action of transferring an investment from one scheme to another within the same mutual fund house (AMC). This facility allows investors to move money between schemes—such as from a debt fund to an equity ...

    • What does holding overlap mean?

      Holding overlap arises when an investor possesses the same shares across multiple holdings. For example, consider Mr. Mani, a Fyers client. He has invested ₹1,00,000 in the Franklin India Technology Mutual Fund and simultaneously holds TCS stocks ...

    • What does T1 quantity mean in my stock summary?

      In FYERS, T1 quantity refers to stocks that you’ve purchased but are still in the settlement phase. These shares appear under your Holdings with a “T1” label and are not yet fully settled in your Demat account. What is T1 Quantity? When you buy a ...

    • What does extinguishment date mean in share Buybacks?

      The extinguishment date refers to the timeline when a company, after buying back its own shares or other securities, must destroy them. This process is typically completed within a week post the buyback's conclusion. The aim is to reduce the ...

    • What does 'Beta Analysis' mean in FYERS 2.0 App?

      The Beta is the measure of a stock’s volatility against the index. Beta Analysis provides the how volatile is the stock compared to the index. Let's say, the Beta of the Nifty50 Index is 1.00. If the beta of ‘X Ltd.’ is 0.50 then the price of X Ltd. ...