By Zac, CountingPips.com
A new article out today has said that the National Futures Association is going to begin tighter scrutiny of its member companies for possible “slippage” pricing abuses. The article, written by Sarah Morgan and published on the Wall Street Journal website, says the NFA will start analyzing trades by the 16 Forex firms registered with the NFA to make sure these firms are not taking advantage of any slippage improprieties.
Slippage occurs when a trader places a market order at a certain price but the order is executed at a different price. This can occur in fast-moving markets like the forex markets and can have a detrimental effect to your trade.
Two firms, Gain Capital and IkonFx, have already paid a fine this year due to investigations of slippage by the NFA without acknowledging or denying any wrongdoing.