The difference between expected and actual trade execution price.
In depth
Slippage occurs in fast-moving or illiquid markets when the price moves between order placement and execution. Larger orders cause more slippage by moving through the order book. Limit orders avoid slippage but risk no fill.
Frequently asked about Slippage
What is Slippage?
The difference between expected and actual trade execution price. Slippage occurs in fast-moving or illiquid markets when the price moves between order placement and execution. Larger orders cause more slippage by moving through the order book. Limit orders avoid slippage but risk no fill.
Why does Slippage matter for investors?
In trading, Slippage is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
How is Slippage used in practice?
Slippage occurs in fast-moving or illiquid markets when the price moves between order placement and execution. Larger orders cause more slippage by moving through the order book.