Trading
Slippage
The difference between expected and actual execution price.
Full Definition
Slippage occurs when a trade is executed at a different price than expected, typically during high volatility or low liquidity conditions. Slippage can be positive (better price) or negative (worse price). It's more common with market orders, during news events, and in less liquid markets. Using limit orders can help avoid slippage.
Example
You place a market buy order for EUR/USD expecting to fill at 1.1050, but due to fast-moving prices during news, you get filled at 1.1055. This 5-pip negative slippage increases your effective entry cost.
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