Slippage Slippage is the difference between the expected price of a trade and the price it is actually filled at.
What it means
Slippage describes the difference between the price a trader expected or requested and the final price at which the order was completed. It can occur when prices move before an order is fully processed or when liquidity at the requested price is limited.
Why it matters in live markets
Slippage matters because live prices can change quickly, especially during fast, volatile, or low-liquidity conditions. It can be negative, positive, or neutral depending on how the market moves during execution.
Key points
- Slippage is the difference between requested price and final execution price.
- It can be negative, positive, or neutral.
- It is more noticeable during fast or illiquid markets.
- It can be influenced by volatility, liquidity, order timing, and order type.
- Slippage is an execution concept, not automatically evidence of poor execution.
Example
If an order is requested at 1.2500 but completed at 1.2502, the final price is different from the requested price. That difference is slippage.
Related glossary terms
Execution, Execution Quality, Liquidity, Market Depth, Stop Orders
Where you will see it
You will usually see slippage discussed in execution education, fast-market explainers, trading environment pages, and broker-clarity content.