Trading the US market
Slippage
Definition
The difference between the price you expected and your actual fill, caused by fast moves, thin liquidity or gaps.
Example
Suppose a stock shows $30.00 on your screen and you send a market order to buy 500 shares just as news hits. The order fills at an average of $30.12, so slippage is 12 cents a share, or $60 on the trade. In a quiet, liquid stock, the same order might have filled within a cent of $30.00.
Hypothetical numbers, for illustration only.
Also defined in
UpTickFlow is our product. These guides are education, not financial advice. Trading involves a substantial risk of loss.