AquaFutures Slippage and Volatile Markets: What to Expect During News

Written by Paul

Published on

January 11, 2026

Slippage on AquaFutures accounts happens when your order fills at a different price than expected—common during volatile market conditions like news events, market open/close, and low liquidity periods. During major news (FOMC, NFP, CPI), slippage of 5-20+ ticks on ES is normal. Market orders get worse fills than limit orders, and wider spreads (0.50-2.00 points vs normal 0.25 points) increase execution costs.

AquaFutures doesn't add slippage—it comes from market conditions on CME/exchange. You trade the same markets as retail traders, with the same liquidity and spreads. Managing slippage means avoiding market orders during news, using limit orders with buffer room, and staying away from volatile periods entirely unless you're specifically trading news events.

I'm breaking down what causes slippage, how much to expect during different market conditions, why news events create massive slippage, strategies to minimize bad fills, and whether slippage counts against your drawdown (yes, it does).

Quick heads-up: This article is based on my real experience with Aquafutures and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check Aquafutures´s website or their faq page.

What Is Slippage?

Slippage = difference between expected price and actual fill price

Example 1: Market order during calm conditions

ES bid/ask: 5,200.00 / 5,200.25
You place market buy order
Expected fill: ~5,200.25 (current ask)
Actual fill: 5,200.50 (0.25 points slippage = $12.50)

Why: By the time your order hit the exchange, the ask moved up.

Example 2: Market order during news

FOMC announcement at 2pm ET
ES bid/ask: 5,200.00 / 5,203.00 (3-point spread, normally 0.25)
You place market buy order
Expected fill: ~5,203.00
Actual fill: 5,208.50 (8.50 points slippage = $425)

Why: Extreme volatility, wide spreads, liquidity disappeared, order filled at much worse price.

Slippage can be positive or negative:

Positive slippage: You buy at 5,200.00, expected 5,200.25 (saved $12.50)
Negative slippage: You buy at 5,200.75, expected 5,200.25 (cost extra $25)

Most slippage is negative—you pay more than expected.

Does Slippage Count Against Your Drawdown?

Yes. Every dollar of slippage counts as loss.

If you expected to pay 5,200.25 but got filled at 5,200.75, you're -$25 (0.50 points on ES) the instant your order fills.

Example:

Your drawdown threshold: $50,350
Current balance: $51,000
Distance to threshold: $650
You place market order during news, suffer $300 slippage
Instantly: $51,000 - $300 = $50,700 (only $350 cushion left)

Heavy slippage during volatile markets can breach your account—even if your trading decision was correct.

For drawdown details, see the maximum drawdown guide.

Typical Slippage by Market Condition

Market Condition	Typical Spread (ES)	Expected Slippage	$ Impact (1 contract)
Normal Hours (9:30am-4pm)	0.25 points	0.25-0.50 points	$12.50-$25
Market Open (9:30am)	0.50-1.00 points	0.50-1.50 points	$25-$75
After Hours (6pm-9:30am)	0.50-1.00 points	0.50-2.00 points	$25-$100
Minor News (retail sales, housing)	0.50-1.50 points	1.00-3.00 points	$50-$150
Major News (FOMC, NFP, CPI)	2.00-5.00 points	5.00-20.00 points	$250-$1,000
Flash Crash / Panic	5.00-50.00 points	10.00-100.00+ points	$500-$5,000+

Key insight: Slippage during major news can be 10-40x worse than normal conditions. A market order that costs $25 in slippage normally can cost $500-$1,000 during FOMC.

For news event details, see the Tier-1 news events guide.

Why News Events Create Massive Slippage

1. Liquidity Disappears

Market makers pull their orders before news. The order book thins dramatically:

Normal conditions:

Bid: 5,200.00 (500 contracts)
Ask: 5,200.25 (500 contracts)

30 seconds before FOMC:

Bid: 5,199.75 (50 contracts)
Ask: 5,201.50 (50 contracts)

Result: 10x less liquidity, 6-point spread (vs 0.25 normally)

2. Volatility Spikes

News causes violent price swings—ES can move 20-50 points in 10 seconds. By the time your order reaches the exchange, price has moved.

3. Everyone Wants the Same Side

During news:

If announcement is bullish, everyone wants to buy → asks vanish → slippage on buys
If announcement is bearish, everyone wants to sell → bids vanish → slippage on sells

4. Wide Bid/Ask Spreads

Normal ES spread: 0.25 points ($12.50)

FOMC spread: 2.00-5.00 points ($100-$250)

You pay this spread every time you cross it (market orders or aggressive limit orders).

Market Orders vs Limit Orders: Slippage Differences

Market orders:

Executed immediately at best available price
Guaranteed fill, not guaranteed price
Suffers maximum slippage during volatility

Example (during FOMC):

Current ask: 5,200.00
You place market buy
By the time it hits exchange: ask is 5,204.50
You get filled at 5,204.50 (4.50 points = $225 slippage)

Limit orders:

Executed only at your specified price or better
Guaranteed price, not guaranteed fill
Suffers less slippage but might not fill

Example (during FOMC):

Current ask: 5,200.00
You place limit buy at 5,200.50 (0.50 points buffer)
Price spikes to 5,204.50 then drops back
Your order fills at 5,200.50 or better
Slippage: 0.50 points max ($25) vs $225 on market order

Verdict: Use limit orders during volatile periods. Accept that you might miss fills—it's better than paying $500 in slippage.

Strategies to Minimize Slippage

Strategy 1: Avoid Trading Major News Events

Don't trade 30 minutes before and 30 minutes after:

FOMC announcements
Non-Farm Payrolls (NFP)
Consumer Price Index (CPI)
GDP releases

Why: Slippage during these events can cost $250-$1,000 per contract—more than most traders make per day.

Strategy 2: Use Limit Orders Instead of Market Orders

Always use limit orders with 0.50-1.00 point buffer from current price.

Example:

ES trading at 5,200.00
You want to buy
Place limit order at 5,200.50 (not market order)
Fills at 5,200.50 or better

You might miss some fills, but when you do fill, slippage is capped.

Strategy 3: Trade During High Liquidity Hours

Best liquidity:

9:30am-11:30am ET (market open, most active)
1:00pm-3:30pm ET (afternoon session)

Worst liquidity:

12:00pm-1:00pm ET (lunch hour, thin)
4:00pm-6:00pm ET (after close, before reopen)
2:00am-6:00am ET (overnight, minimal volume)

Trade when liquidity is high → tighter spreads → less slippage.

Strategy 4: Use Smaller Position Sizes During Volatility

If you normally trade 6 contracts, trade 2-3 during uncertain periods. Smaller positions = less total slippage impact.

Example:

Normal slippage: 0.50 points × 6 contracts = $150
Reduced size: 0.50 points × 3 contracts = $75 (saved $75)

Strategy 5: Accept Missed Fills

Some traders avoid slippage by placing very tight limit orders (exactly at current bid/ask). The order might not fill—and that's okay.

Better to miss a trade than pay $500 in slippage.

Real-World Slippage Examples

Example 1: Market order during NFP

Trader: Buys 4 ES contracts at market during NFP (8:30am)
Expected fill: 5,200.00
Actual fill: 5,205.50 (5.50 points slippage)
Cost: $1,100 (5.50 × $50 × 4 contracts)

Lesson: Don't use market orders during major news. Use limit orders with 2-3 point buffer or don't trade at all.

Example 2: Limit order 30 seconds before FOMC

Trader: Places limit buy at 5,200.50 (current ask: 5,200.00)
FOMC hits, ES spikes to 5,210.00
Order never fills (price gapped above limit)
Cost: $0 (missed trade, but avoided slippage)

Lesson: Sometimes not trading is the best decision.

Example 3: Flash crash (May 2010 style)

Trader: Long 6 ES contracts during flash crash
Tries to exit with market order
Expected fill: ~5,100.00
Actual fill: 5,050.00 (50 points slippage)
Cost: $15,000 (50 × $50 × 6 contracts)

Lesson: During extreme volatility (flash crashes, circuit breakers), slippage can be catastrophic. Use stops, not market orders.

Does AquaFutures Add Slippage?

No. AquaFutures doesn't add slippage or widen spreads artificially.

You trade directly on CME, ICE, and other exchanges—same markets as retail traders. Slippage comes from:

Exchange liquidity
Market maker behavior
Natural bid/ask spreads

Your trades are not "B-book" or simulated. They're real orders on real exchanges.

This means:

Your slippage is identical to what a $100K retail account would experience
You can't blame AquaFutures for bad fills (it's market conditions, not the firm)

For commission details, see the commission fees guide.

Slippage on Stop-Loss Orders

Stop-loss orders become market orders when triggered.

Example:

You're long ES at 5,200.00
You set stop-loss at 5,190.00 (10-point stop)
ES drops quickly: 5,195 → 5,189 → 5,185
Your stop triggers at 5,190.00
Actual fill: 5,187.50 (2.50 points slippage = $125)

Why: Once price hits your stop, the order becomes a market order. During fast moves, it fills at the next available price—which might be worse than your stop level.

Solution:

Use stop-limit orders instead of stop-loss orders:

Stop price: 5,190.00 (trigger)
Limit price: 5,189.00 (worst acceptable fill)

Risk: If price gaps through your limit (5,190 → 5,186), your order doesn't fill. You're still holding the position.

Trade-off: Stop-limit protects from slippage but risks non-fill. Stop-loss guarantees fill but suffers slippage.

Most prop traders use stop-loss (accept slippage risk) rather than stop-limit (risk holding losing position).

Slippage During Market Open (9:30am ET)

Market open is the second-worst time for slippage (after major news events).

Why:

Overnight news accumulated → everyone trading at once
Liquidity imbalance (more buyers or sellers)
Spreads widen to 0.50-1.00 points (vs 0.25 normally)

Typical first-minute slippage:

Market orders: 0.50-1.50 points ($25-$75)
Aggressive limit orders: 0.50-1.00 points ($25-$50)

Advice: Wait 5-10 minutes after market open for liquidity to normalize. Spreads tighten, slippage drops back to 0.25-0.50 points.

Exception: If you're specifically trading opening range breakouts, accept the slippage as cost of the strategy.

For market timing details, see the trading dashboard guide.

Can You Dispute Slippage with AquaFutures?

No—unless it's a system error.

Slippage from market conditions isn't disputable. If you placed a market order during NFP and suffered $500 slippage, that's your responsibility—not AquaFutures' fault.

Disputable situations:

Platform glitch: Your limit order at 5,200.00 filled at 5,205.00 (system error)
Delayed execution: Your order took 30 seconds to reach exchange (should be instant)
Wrong price shown: Platform displayed 5,200.00 but you got filled at 5,210.00 (data feed issue)

To dispute:

Screenshot the issue immediately (order ticket, timestamp, fill price)
Email AquaFutures support with evidence
Explain what happened vs what should have happened
They investigate within 24-48 hours

Most disputes are denied because slippage from market volatility is normal and expected.

For support details, see the customer support guide.

Does Slippage Affect Win Days?

Yes, indirectly.

Win days = days you close with net profit.

Example:

You take 3 trades: +$400, +$300, +$200 = +$900
But you suffered $200 slippage across all trades
Net P&L: +$700 (still a win day)

If slippage was $950, your net would be -$50 (loss day, doesn't count as win day).

Heavy slippage during volatile trading can turn potential win days into loss days.

Slippage vs Spread: What's the Difference?

Spread:

The difference between bid and ask
Example: Bid 5,200.00, Ask 5,200.25 → 0.25 point spread
You pay this every time you cross bid/ask

Slippage:

The difference between expected price and actual fill
Example: Expected 5,200.25, filled at 5,200.75 → 0.50 points slippage
You pay this during volatile conditions or market orders

Both cost money. Both count against your P&L.

During normal conditions: Spread is your main cost (0.25 points = $12.50)

During volatile conditions: Slippage becomes your main cost (1.00-10.00+ points = $50-$500+)

Final Thoughts: Avoid Volatility During Evaluations

During evaluations:

You're grinding for 6-10 weeks to hit a $3,000 profit target. Why risk $500-$1,000 in slippage trading NFP or FOMC?

Close positions before major news. Don't trade during volatile periods. Use limit orders.

On funded accounts:

If you're consistently profitable with a $5,000+ buffer, you can afford to take slippage risk trading news events. But even then, most professional prop traders avoid major news—the risk-reward isn't worth it.

Remember: Slippage counts against your drawdown threshold. Heavy slippage can breach your account—even if your trading idea was right.

Trade when markets are calm, liquid, and predictable. Let other traders deal with the chaos.

Frequently Asked Questions

What is slippage in futures trading?

Slippage is the difference between your expected fill price and actual fill price. Example: You place a market buy order expecting to pay 5,200.25, but it fills at 5,200.75—that's 0.50 points ($25) slippage. Slippage happens during volatile markets, low liquidity periods, and when using market orders instead of limit orders.

How much slippage is normal on AquaFutures accounts?

Normal conditions (9:30am-4pm): 0.25-0.50 points ($12.50-$25 per contract). Market open (9:30am): 0.50-1.50 points ($25-$75). Major news events (FOMC, NFP): 5.00-20.00 points ($250-$1,000). Flash crashes: 10-100+ points ($500-$5,000+). AquaFutures doesn't add slippage—it comes from market conditions on exchanges.

Does slippage count against my drawdown?

Yes. Every dollar of slippage counts as a loss against your account balance and drawdown threshold. If you suffer $300 slippage on a market order during news, you're instantly -$300. Heavy slippage during volatile markets can breach your account even if your trading decision was correct.

Why does news cause so much slippage?

News events cause: (1) Liquidity disappears—market makers pull orders, (2) Volatility spikes—price moves 20-50 points in seconds, (3) Everyone trades same direction—bids or asks vanish, (4) Wide spreads—normal 0.25-point ES spread widens to 2.00-5.00 points. During FOMC/NFP, slippage can be 10-40x worse than normal.

How can I minimize slippage?

Five strategies: (1) Avoid trading major news events (FOMC, NFP, CPI), (2) Use limit orders instead of market orders, (3) Trade during high liquidity hours (9:30am-11:30am, 1pm-3:30pm ET), (4) Use smaller position sizes during volatility, (5) Accept missed fills—better than paying $500 slippage.

Do limit orders eliminate slippage?

No, but they cap it. Limit orders fill at your specified price or better—you control maximum slippage. Example: Limit buy at 5,200.50 fills at 5,200.50 or lower. Trade-off: Your order might not fill if price moves away. Market orders guarantee fill but suffer maximum slippage.

Can I dispute slippage with AquaFutures?

Only for system errors—not market conditions. Disputable: Platform glitch filled your limit order at wrong price, delayed execution (30+ seconds), wrong price displayed on platform. Not disputable: Market order during NFP suffered $500 slippage (normal market volatility). Screenshot issues immediately and email support with evidence.

Should I avoid trading during market open due to slippage?

First 5-10 minutes (9:30-9:40am ET) have wider spreads (0.50-1.00 points) and higher slippage (0.50-1.50 points per contract). Wait 5-10 minutes for liquidity to normalize—spreads tighten back to 0.25 points. Exception: If you trade opening range breakouts, accept slippage as strategy cost.