JoymistaWhat Is Slippage in Trading?
Slippage is the difference between the price you asked for and the price your trade actually filled at.
Explained
Slippage happens most around major news, at market opens and in thin markets, and it can go against you or in your favour. Market and stop orders are more exposed to it than limit orders.
Example
Example with made-up numbersA buy’s stop sits at 1.0950, but strong news makes it fill at 1.0947, 3 pips of slippage against you.
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Related terms
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Open in JoymistaEducational content, not investment advice.