Slippage and Real Market Conditions

Our evaluation programs operate within simulated market environments designed for educational and evaluation purposes. We are going to replicate real market conditions in our programs to allow traders to work in the most realistic scenarios, because one of our primary goal to become a prop firm which profits WITH traders, not FROM traders.

What is Slippage?

📌 Slippage occurs when your order is not executed at the specified price because there is not enough liquidity at that level. As a result, the order is executed at the nearest available price, reflecting the current market conditions.

What Causes Slippage?

🔹 Slippage happens when the liquidity at the requested price is insufficient, and the order is filled at the closest available price.
🔹 The probability of slippage increases during periods of high market volatility or when trading with large lot sizes.
🔹 This is a natural phenomenon because market depth and liquidity are constantly changing.

📌 Example:

You place a stop-loss order at 1.0850 for 10 lots of EUR/USD, but due to insufficient liquidity, the trade can only be closed at 1.0840. In this case, your order will be executed at 1.0840, not the desired 1.0850.

Can Slippage Be Avoided?

❌ No, slippage is an inherent part of the market and cannot be completely avoided.
✅ However, you can minimize the risk by:

• Trading liquid assets with lower spreads.
• Avoiding trading during high volatility (news releases, major market movements).
• Adjusting lot sizes – the larger the order volume, the higher the risk of slippage.

Does Slippage Occur Only in Prop Firms?

❌ No. Slippage happens across all financial markets, including:

• Forex, where prices change dynamically.
• Stock markets, especially when trading large volumes.
• Cryptocurrency markets, which are characterized by fluctuating liquidity.

📌 Markets function as dynamic systems, so slippage is a norm, not an exception.

Why Does the Prop Firm Simulate Slippage?

📊 Our evaluation programs operate in simulated market environments that closely replicate real market conditions.

We replicate:
✅ Order execution speed
✅ Market depth and liquidity
✅ Slippage during high volatility periods

📌 The larger the trade size or the stronger the market movement, the higher the likelihood of slippage.

Why Do We Recreate Real Market Conditions?

🔹 We aim to evaluate traders under conditions that closely resemble the real market.
🔹 This is necessary for selecting professional traders.
🔹 Our goal is to collaborate with traders and connect them to real accounts.

📢 We are building a prop firm that profits alongside traders, not from traders.

How Does the Pricing Mechanism Work?

📌 Slippage occurs due to market price changes at the moment of order execution.

• If there is not enough liquidity at the selected price, the trade is executed at the next available price.
• This aligns with market depth and VWAP (Volume-Weighted Average Price).
• The more traders executing orders simultaneously, the higher the likelihood of slippage.

📌 This is especially important when trading large volumes or during periods of high volatility.

Conclusion

🚀 The market is not a perfect environment, but a dynamic system where adapting your strategy is essential.

✅ Slippage is not a bug but a part of real trading. Your goal is to learn how to trade in these conditions.
✅ We create real market conditions to prepare traders for future collaboration on live accounts.
✅ As a result, top traders get the opportunity to manage real capital.

📊 Your task is to adapt to these conditions and develop a strategy that works even in a changing market environment! 🚀

P.S

It can occur during volatile moments, for example, during a high-impact news event in retrospect to the affected currency. This is something we cannot control.

Manage your risk wisely if you hold trades during these moments.