What Is Slippage in Prop Trading?

Slippage is the difference between the price you expected and the price you got. It happens when prices move quickly or liquidity is thin.

Example

You set a stop at 1.1000, but a fast move fills you at 1.0990, adding 10 pips to your loss. On a 2-lot position that’s an extra $200, which could push you over a daily limit you’d planned to stay under.

How prop firms apply it

Simulated accounts at prop firms model slippage in different ways. Firms restrict news trading partly because fills during releases can be unrealistic.

Practical tips

• Leave a buffer below your daily limit for slippage.
• Avoid market orders during releases.
• Trade liquid hours.

More terms in our prop firm glossary.

Slippage and prop firm rules

Slippage matters more on prop accounts because loss limits are hard lines. A stop that slips by a few pips on a large position can turn a planned 0.9% daily loss into a 1.1% loss, and repeated slippage across a morning can take you past a 3% daily limit you thought you were safely inside.

How to reduce slippage

• Trade during liquid hours, such as the London–New York overlap (13:00–17:00 UK time).
• Use limit orders for entries where your strategy allows.
• Reduce size before scheduled releases, or avoid trading them.
• Don’t place stops exactly at obvious round numbers, where many orders cluster.

Build a buffer of at least 10–20% of your daily limit for slippage and spreads.

Prop firms we currently recommend

1. 1
   

   FundedNext Best for MetaTrader users

   Max account

   $200,000 (up to $4M through scaling)

   Profit split

   80%, up to 95%

   Fee from

   $59.99 USD (confirm at checkout)

   Our rating

   4.4 out of 5

   Visit FundedNext Read review
2. 2
   

   SabioTrade Best for learning while you evaluate

   Max account

   $1,000,000

   Profit split

   80–90%

   Fee from

   $139 USD (confirm at checkout)

   Our rating

   4.0 out of 5

   Visit SabioTrade Read review

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