Slippage and Negative Balance Scenarios

Examples of scenarios that could result in negative account balance include:

Negative slippage

Whenever an order is placed between one of these parties there is a time delay (even if only for a fraction of a millisecond). If prices change during that time delay then there could be SLIPPAGE.

When slippage occurs you don’t get the price you were quoted, instead, you get the next best price that is available.

When you place a large order you could be slipped because there are not enough buyers or sellers to take your trade.

Slippage occurs when

• There is volatility – Such as news events
• Fast moving markets – Such as during a breakout
• Illiquid markets – such as public holidays
• Over the weekend

Axi does not offer a guarantee on stop losses. It is possible to receive negative slippage which can result in you losing more than the balance of your account.

Overnight financing charges

If you are holding a short position overnight, swap charges will apply, and these have the potential to create a negative result.

Index CFD dividend adjustment

Index CFDs are made up of a group of shares that may pay or charge dividends throughout the year. Short positions will be positively impacted by the drop in Index price, so you will be debited the dividend adjustment value. Long Positions are negatively impacted so you are credited with the dividend adjustment.

For more information on dividends, please check here.