.svg)
.svg)
.svg)
.svg){kind=icon}
.svg)
.svg){kind=icon}
.svg)
.svg){kind=icon}
.svg)
.svg){kind=icon}
.svg){kind=icon}
.svg){kind=icon}
What is slippage?
← Back to FAQ
Slippage refers to the difference between the expected price of a trade and the actual price at which the trade is executed. It typically occurs in fast-moving or volatile markets, where there may not be enough liquidity to fill an order at the expected price.
Slippage is often seen during periods of high market volatility.
When a market moves rapidly, the price can change quickly between the time an order is placed and when it is executed. Slippage can happen with both market orders and limit orders, but it is more common with market orders.
In some cases, slippage may result in a more favorable price, but in many cases, it leads to a worse price than initially anticipated.
Short example:
Suppose an investor places a market order to buy 100 shares of a stock at $50 each.
However, by the time the order is executed, the stock price has risen to $51.
The investor ends up paying $51 per share instead of the expected $50, resulting in slippage of $1 per share.
Disclaimer: Investing brings risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. Therefore, they are for educational purposes only.
