What does Slippage mean?
Slippage occurs when an order is executed at a different price from the one expected. It is especially relevant for market orders, stop orders and fast-moving conditions where available liquidity can change before the order is filled.
Why it matters
- Slippage changes the real entry or exit price.
- It can increase realized losses or reduce realized gains.
- Volatile or thin markets can produce larger slippage.
How it works
- 01
An order reaches the market.
- 02
The expected price may no longer have enough available liquidity.
- 03
The order is filled at the next available price or across multiple price levels.
Example
A trader expects a market exit near 20,100.00 but receives an average fill at 20,099.50. The difference between the expected and actual execution is slippage.
Common misunderstandings
- Slippage is not always caused by a broker error.
- Limit orders control price but may not fill.
- Fast markets can increase execution uncertainty.
Educational reference
This glossary explains terminology and
general market concepts. It is not a
trading signal or a guarantee of future
results.