I’m very new to day trading. I entered a trade when the buy price was $6,091.00, but my position instantly went negative, showing a fill price of $6,094.75. As this is paper trading, can anyone clarify why my fill price differed from $6,091?

In day trading, the fill price can differ from the price you see when you place an order due to several factors, even in a paper trading environment. When you decide to enter a trade, you see the best available bid or ask price on the order book. However, by the time your order is executed, prices can fluctuate, especially in fast-moving markets, causing what’s called “slippage.” Slippage is the difference between the expected price of a trade and the actual fill price.

In your example, the buy price showed $6,091.00, but your order got filled at $6,094.75. This indicates that the price moved up before your order was executed, leading to a higher fill price. This can occur due to high volatility or low liquidity, where there aren’t enough orders at your expected price to fill your entire order, so it gets executed at the next available price.

Additionally, paper trading platforms simulate the market environment and may incorporate these elements to give you a realistic trading experience. They often mimic real-time market conditions, including slippage. It’s essential to consider these factors in both practice and real trading to develop strategies that account for such variances.