Definition of Slippage
The difference between the expected fill price of an order and the actual price at which it is executed. Slippage commonly occurs during high volatility or when liquidity is thin.
At a glance
Term
Slippage
URL slug
slippage
Category
Trading costs
Short answer
The difference between the expected fill price of an order and the actual price at which it is executed.
Deep dives
Full A–Z glossary
Example
Example: a 1.2-pip spread plus commission equal to 0.6 pip is ~1.8 pips of entry cost. Put “Slippage” into the R:R math before judging a strategy.
Common mistake
Common mistake: ranking brokers on teaser “from” prices without measuring “Slippage” on the same session and symbol.
Professional tip
Tip: log “Slippage” at London–New York overlap and at quiet hours — the gap shows true strategy cost.
Practice tools:
Related terms
FAQ
The difference between the expected fill price of an order and the actual price at which it is executed.
All-in cost (spread, commission, financing) often hinges on “Slippage”. Skipping it distorts profit/loss expectations.
Common mistake: ranking brokers on teaser “from” prices without measuring “Slippage” on the same session and symbol.