Wondering about the slippage meaning in trading?

Wondering about the slippage meaning in trading? Slippage is the difference between the price you expect when placing an order and the price you actually get when it’s filled. It happens in fast-moving or thin markets, across stocks, forex, futures, and crypto. Slippage can be negative (worse price) or positive (better price) depending on how the market moves before execution. It’s common with market orders during volatility, news releases, or low liquidity, and when spreads widen. Traders measure slippage in pips, cents, or basis points, comparing the quoted price to the execution price. You can reduce slippage by using limit orders, setting slippage tolerance, trading during liquid sessions, avoiding illiquid symbols, and using tools like guaranteed stops where available. Understanding slippage helps you manage costs, size positions accurately, and choose the right order type for your strategy. For example, if you place a buy at 100.00 but are filled at 100.05, the 5 cents (or 5 pips in forex) is slippage. Tracking average slippage by venue, time, and order size can reveal hidden costs and improve your execution plan.

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