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Slippage and spread?

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Grantx View Post
Spread: I understand what spread means in forex but what does it mean in futures? In forex, usually before and during a news event, the spread widens and you pay more to play (never knowing exactly how much until after you have entered) but with futures, my round trip fee is fixed so how does spread come into it?

Slippage: If I go long on CL with a sell stop limit below for my stop, my order will be lifted at that price whereas a normal stop order will most likely suffer some slippage on a thin market. How wrong have I got it?

In futures, spread simply means the distance/difference in ticks between where you can buy and where you can sell.

As you say, round trip cost is fixed in futures. The fact that - in most markets, most of the time - the spread is zero (you can say either zero ticks or 1 tick depending on how you look at it) is thanks to these products being highly liquid. However during a data release liquidity dries up so usually the spread widens in a fashion not dissimilar to Forex. For instance if you watch 6E 30-15 seconds before NFP data comes out, the spread can widen significantly. Occasionally you will see the spread widen considerably on CL before EIA release.

As for the slippage question I don't have an answer I am 100% sure about.

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