Latency vs slippage, what is the difference?
The short answer
This page shows the difference between latency and slippage in forex. Latency is a delay, slippage is the gap between the price you asked for and the price you got. A delay lets the price move, while your broker’s execution mode decides the fill.
A delay and a price gap are linked, but they have different causes.
Telling them apart shows you whether to look at your connection or at your broker. The table sets the three terms side by side.
| Term | What it is | What you notice | What sets it |
|---|---|---|---|
| Latency | The time your order takes to go between your platform and your broker, in milliseconds | A high ping, the time data takes there and back | Distance, your own line and the networks in between |
| Slippage | The gap between the price you asked for and the price you got, in pips or points | A trade opens at a different price from the one you clicked | Price movement, and your broker’s execution mode |
| Requote | Your broker offering new prices instead of filling the order | A prompt with new prices to accept or reject | Your broker’s execution mode and your deviation setting |
They are linked, because a price can move while an order travels. They are still different things. The what is trading latency page covers the first.
A longer delay gives the price more time to move.
Your platform sends an order at the price on your screen. The order takes time to reach your broker, and the price can change in that time.
Some of that time is fixed by distance, so it sits on every order. The panel works out that minimum for any two of our cities.
The maths of ping
01
Your broker’s distance sets a minimum time for every order
Light in a cable travels about 200 km every millisecond. Your order goes there and back, so every 1,000 km adds at least 10 ms.
What it means for youPhysical distance dictates your latency floor. Fibre travel times remain constant regardless of routing tools.
minimum there and back (ms) = distance (km) ÷ 100
02
One lost piece of data makes everything wait
When a packet drops, your platform pauses while requesting a retransmission across the full distance. Consecutive drops double this waiting penalty. Incoming price ticks stall during the exact seconds volatility peaks.
wait 1× → 2× → 4× → 8×
03
Our server in your broker’s city recovers lost data locally
Our server in your broker’s city opens the final connection to your broker. On a quiet connection, a repeat loss doesn’t double the wait.
What it means for youWhen a piece is lost near your broker, our server recovers lost data inside that city instead of from your computer.
distance set by physics · recovery in your broker’s city is ours
Try your own distance
Singapore to London is about 10,850 km in a straight line, so at least 108 ms there and back. No order can reach your broker and hear back in less. Real routes are longer.
We don’t promise lower ping because distance sets the minimum. Local recovery in your broker’s city covers only the connection between our server and your broker. The repeat-loss fix covers the first few tries on a quiet connection, after the first repeat try.
What happens when the order arrives depends on your broker’s rules. MetaQuotes says the broker sets the execution mode for each instrument, and its MetaTrader 5 help describes the modes.
The table shows one example move under each mode, so you know what to expect on your screen.
| Execution mode | What the broker does | What you see |
|---|---|---|
| Instant execution, move inside your deviation | Fills at the new price | 2 pips of slippage |
| Instant execution, move beyond your deviation | May reject the order and offer new prices | A requote to accept or reject |
| Market execution | Decides the fill price without asking | A fill at the broker’s price, which you agreed to in advance |
The deviation is the largest gap you accept. MetaQuotes also describes request execution, where you confirm a quoted price first. Modes vary by instrument and broker, so check yours.
A delay does not always cause a price gap.
A delay only gives the price time to move. If it does not move while the order travels, the delay changes nothing about the price you get.
Your order also spends time inside your broker’s systems. That time is not network delay, and no connection setting on your side changes it.
So one connection can meet a price gap on one trade and none on the next. The market and your broker’s mode shape the outcome too. That is why you judge gaps over many trades, not one.
Our server can’t change price gaps, only what happens after a drop or lost data.
A backtest runs on your own machine, so no internet link can lose a piece of data during a news release. In live trading, one lost piece holds up every price update and order behind it. Everything waits while your computer sends it again across the world.
Traders Proxy cannot shorten the distance to your broker or change its execution mode. We don’t promise lower ping. Distance sets the minimum. We do not claim it changes price gaps or fills.
If your device drops off, our server notices quickly and frees its place. So your platform can reconnect instead of hanging while the market moves.
This covers your side of the connection only. A connection with no data on it for a long spell is closed.
If your connection drops, your device can reconnect straight away, even when our server is busy. So a drop at a busy moment doesn’t leave you waiting to get back in.
Your device must come back from the same network within a short time. Your plan’s device limit still applies.
Our server in your broker’s city opens a separate local connection to your broker. If data drops on that link, our server recovers it inside that city. Trading ports go first when a server is busy, and broker addresses stay warm in memory.
You cannot paste four values into your platform while your chart is already frozen in a live trade. Set it up today while the market is calm. Then time it on your own screen during the next release.
If our server in your broker’s city is unreachable, your platform shows an error and your dashboard asks before using another city. If your broker prohibits proxies, don’t use one.
Your own trade log shows where your price gaps come from.
These four steps turn a hunch into numbers you can act on.
- Record the price you asked for and the price you got, for every trade. The difference is your price gap.
- Log at least 50 trades, so one odd fill does not decide the result.
- Split the log by session and by news, so you can see where the gaps sit.
- Note your ping at the same times, using the guide to checking ping to your broker. If gaps grow when ping rises, delay contributes to them. If not, look at the market or your broker.
For causes and fixes, read the MetaTrader slippage guide and slippage during news.
Frequently asked questions
Do brokers count my network delay in their execution speed?
Check how your broker defines its figure. One that starts when the order arrives leaves out your network delay, and one that starts when you click includes it.
Can slippage be positive?
Yes. Slippage is only the gap between the price you asked for and the price you got, so it can go either way. Whether a better price reaches you depends on your broker’s rules.
Can I get slippage with a low ping?
Yes. Price can move while your order is with your broker. The fill follows your broker’s execution mode, so a short delay does not settle the price you get.
How much slippage is normal?
There is no agreed figure, and we quote none. Your own log over 50 trades or more, split by session, is the number that describes your trading.
Does a VPS or a proxy change slippage?
A VPS can shorten the distance by putting your platform nearer your broker’s server. Traders Proxy does not shorten it, and we do not claim it changes slippage or fills.
Field reports · Verified forum threads
Real forum reports, what our system does, and where it stops.
Every quote below links to the forum thread or vendor guide where it appeared. Underneath each quote, see which parts of our system work together on it and where our server stops.
cTrader picks a far or 'wrong' Spotware proxy and the trader cannot choose (Sydney-3, Netherlands, Jakarta-2, London-6 from Korea)
“The Connection settings allow configuring a proxy server. Select Use proxy to connect to enable the proxy connection settings.”
Why a proxy can backfire here. cTrader for Windows has a proxy setting and Traders Proxy supports it over HTTP. cTrader still chooses its own servers.
- Built-in
HTTPproxy loginBoundary
Where it stops. In cTrader on Windows, the Connection proxy setting routes your connection to Spotware’s cloud. Spotware still picks its own cloud node on the far side.
MQL5.com bans addresses or whole hosting subnets so downloads, MQL5 login and Market fail
“I think - it is the following case - "autoban because your IP became to be IP of the spammer". If you have dynamic IP address (majority of internet users are having dynamic IP) so - switch your PC off and restart your modem/router; the IP address will be changed”
Why a proxy can backfire here. No claim about address reputation.
Where it stops. Our server address is shared by people on a Traders Proxy plan in that city. If MQL5.com blocks a hosting range, Market downloads can fail.
cTrader Desktop says 'Connection error' while cTrader Web and the phone app log in fine
“After investigating the reports, the issue seems to have been caused by a recent Windows update.”
Why a proxy does not change this. Traders Proxy doesn't repair login problems caused by Windows updates or an out-of-date platform. Update the platform first.
Where it stops. Do not sell the proxy as a fix for 'Desktop won't log in but Web works'.
MT4/MT5 or cTrader trade alerts and signal bots cannot reach Telegram
“I am a member of the private channel, but my bot is not a member.”
Why a proxy does not change this. Telegram in one tap works in the Telegram app. It does not route your trading robots' messages.
Where it stops. Alert bots and signal copiers make their own web calls. Those calls are not guaranteed to use your platform’s proxy setting.