What is price slippage?
In trading, slippage refers to the difference aexpects to pay for a trade and the actual price at which the trade is executed.
Slippage occurs because there is a slight time delay between the traderand the time the broker receives the order. During this time delay, the may have changed.
Slippage can be much higher in fast-moving,markets. It can either work in favour of or against the trader.
and frictional costs may also have an impact on the slippage percentage. Many employ algorithms to reduce slippage, and slippage can vary from broker to broker.
As it is an important concept in trading, we recommend you to discuss any further questions you have on slippage in our forum: