What is Slippage?

The difference between the expected price of a trade and the price at which the trade is actually executed.

In-Depth Explanation

Slippage often occurs during periods of high volatility or low liquidity when the market "jumps" over your price before the broker can execute the order.

Practical Example

"You set a stop loss at 1.2400, but during a news event, the market gapped and your trade closed at 1.2395."

Related Terms

Volatility Liquidity Gapping

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