In our last article we talked about the spread. About how, without you noticing, it eats up a meaningful part of many traders’ results.
But there is a second cost almost no one talks about. One that appears suddenly, when the market moves faster than expected. Slippage.
InvidiaTrade LATAM.
Slippage is the difference between the price you asked to enter (or exit) a trade at, and the price the order actually filled at.
It sounds small. But added up, it can be the difference between a profitable strategy and one that just covers costs.
What slippage is, and why it happens
When you send an order, the broker processes it and routes it to the market. In that interval, however short, the price can change. If you got filled at a worse price than you saw, that is negative slippage. If it was better, positive slippage.
Both exist. But in practice, traders tend to feel the negative kind more, especially in high-volatility moments. It is one of those details you only notice after enough trades.
And requotes, what are those?
A requote happens when the broker, instead of executing your order at the price you saw, offers you a different price and asks if you accept.
For anyone who trades frequently, requotes are a nightmare. They slow you down, they cost you opportunities, and more importantly, they tell you something. Your broker is not sending orders to the real market. It is putting itself in the middle.
When these hidden costs show up
Slippage and requotes do not happen randomly. They tend to concentrate in predictable moments. High-impact economic news, like NFP, rate decisions or macro data. Session opens and closes. Sharp moves in an asset. Low-liquidity windows, like overnight or weekends in crypto.
In all of those cases, what happens with your execution depends less on your strategy and more on how your broker operates under the hood.
The real difference between broker types
Here is the point few brokers explain. Not all brokers execute the same way.
Traditional market makers take the other side of your trades. When you win, they lose. That creates a conflict of interest and, in fast markets, translates into more slippage and requotes. STP and ECN brokers, on the other hand, pass your orders directly to liquidity providers. They are not on the other side of your trade, so execution is faster and more aligned with the real market.
That difference, which sounds technical, ends up shaping the trader’s daily experience.
Why this affects your profitability
Imagine a strategy that, in backtesting, returns +10% a month. Brought live with a broker that has poor execution, that 10% can turn into 4%, 2%, or even a net loss. Why? Because every entry happens a little worse than planned and every exit costs a little more.
The system is the same. What changed is where it got executed.
InvidiaTrade’s approach
InvidiaTrade runs on an STP execution model, with no dealing desk against the client. In practice that means no requotes under normal market conditions, controlled slippage in both directions, direct access to institutional-grade liquidity providers, and more consistency between what you see on the chart and what happens in your account.
We do not promise the market will always move in your favor. We promise execution will not be against you.
The takeaway
If the spread is the visible cost, slippage and requotes are the invisible ones. And invisible costs are the most dangerous, because they erode results without the trader understanding why.
That is why evaluating a broker is not just about checking the advertised spread or commission. It is about understanding how it processes your orders during the worst moments of the market. That is where you really see who you are trading with.
About InvidiaTrade
InvidiaTrade is a global online trading platform that combines advanced technology, transparent execution, and 24/7 customer support.
The company continues to innovate to provide secure, intelligent, and accessible trading experiences.
Website: www.invidiatrade.com
Socials:
Instagram: @invidiatrade
