Slippage

The difference between the expected price of a trade and the price at which the trade is actually executed.

What You Need To Know

Slippage is an unavoidable aspect of trading that occurs when there is a discrepancy between the expected and actual execution prices of trades due to market dynamics like volatility and liquidity. While it can be either positive or negative, traders can minimize its impact by using strategies such as trading in liquid markets, avoiding volatile periods, and employing limit orders instead of market orders.