What is price slippage?

    In trading, slippage refers to the difference a trader expects 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 trader entering the trade and the time the broker receives the order. During this time delay, the price may have changed.

    Slippage can be much higher in fast-moving, volatile markets. It can either work in favour of or against the trader.

    Liquidity and frictional costs may also have an impact on the slippage percentage. Many brokers employ algorithms to reduce slippage, and slippage can vary from broker to broker.