What is slippage and how do forex brokers handle it?

Slippage is the difference between the price you request and the price at which your order actually gets filled. It can be negative, when you receive a worse price, or positive, when you get a better one. Slippage happens naturally when markets move quickly or liquidity at a given price disappears before your order is executed. Good brokers pass on both positive and negative slippage fairly, rather than only filling at worse prices. Some offer order types such as guaranteed stop losses or maximum‑deviation settings to limit how far the final price can slip. While you cannot eliminate slippage entirely, choosing a broker with strong infrastructure and deep liquidity can help reduce its frequency and size.