Help CenterWhat is Slippage in Trading?
Slippage occurs when a trade is executed at a different price than expected. This usually happens in fast-moving or volatile markets, where the price changes between placing the order and its execution. Slippage can result in getting a slightly higher or lower price than intended, either positively or negatively affecting the trade outcome.
What can cause slippage?
Slippage can be caused by:
- Market volatility: Sudden price changes, especially during news releases or economic events.
- Low liquidity: When there aren’t enough buyers or sellers at a particular price level.
- Order size: Larger orders may experience slippage due to insufficient market depth.
- Market opening/closing: When markets open or close, there is often less liquidity, leading to potential slippage.