What does slippage in gold investing mean? Why does gold trading experience slippage? How to fry gold to prevent slippage? In precious metal investment, because there is a spread in the precious metal market, the spread is also the key to profitability. The precious metal market is an international market. The market changes a lot. When the volatility is violent, there is a mistake in the price of the investor’s order and the final order. This is slippage.
What is the effect of slippage?
When investors invest in precious metals, it is when the market volatility is relatively obvious, and at this time, the gold quotation in the market is always changing. When investors place an order, the market fluctuates violently, and the investor’s final transaction price Different from what you set yourself. And this price is determined according to the first price that appears in the market. It is too unfavorable for investors. Investors cannot control their orders, and in the end it is impossible to predict whether they will make a profit or a loss.
How to fry gold to prevent slippage?
- Take Profit and Stop Loss
The constant changes in the precious metal market make the profit and loss situation of investors change all the time, and take profit and stop loss can help us to suspend this situation. Set the take profit and stop loss at the price you decide. In this way, when the market changes drastically, investors do not need to worry that slippage will have a greater impact on their profit and loss.
- Price limit platform
In the face of slippage, take profit and stop loss is a method, but if you want to start from the source, you must choose a price limit platform. The limit price platform will not slip, but the market price platform will. The price limit platform will conduct trading operations in strict accordance with the investor’s investment choice. Whether it is the price of the order or the price of the take profit and stop loss, it is completely in accordance with the investor’s requirements, so that the investor’s investment plan can be implemented stably.