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Slippage represents the average difference of the price you want to trade at and the actual price that is available in the market when your trade is executed. For example, if you place an order to buy one FTSE futures contract and the information that you have is that the market is offered at 5830, you may expect to be filled at 5830, but by the time your order reaches the market the offer may have moved to 5832 and you would be filled at 5832, which is 2 points worse than your desired price. It is this difference that is referred to as slippage. In Market Master you can set a slippage value that represents the likely average slippage across all your trades. Appropriate slippage values will vary from one market to the next according to the type of market and the volume of trading. Again, the value can only be entered before the first bar of a data file appears on the screen, from that point on it is fixed, until you load the next data file. 83 Entering Orders On the bottom left of the screen you will see the blue and red buy and sell windows. Along the top of each one are the order buttons: Market, Stop and MIT, these buttons are used to enter orders. Along the bottom you will see two tabs, Active orders and Filled orders. Click on the tabs to move between the active and filled order windows. Market: when you click on this button you are prompted to enter the number of contracts you wish to buy or sell, then click on OK to enter the order. In the real market a market order is filled at the best available price when the order is entered into the market. In the simulator we have broken the day into bars and all orders can be entered just before the next bar. So in the simulator Market orders are always filled at the opening price of the next bar. |
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