Slippage is the difference between the expected price of a trade and the price it actually executes at. It grows in fast or illiquid markets.
How traders use it
- Market orders are the most exposed to slippage.
- It worsens around news and in thin liquidity.
- Limit orders avoid negative slippage but may not fill.
See it in dtcharts
Practice every order type risk-free in the dtcharts terminal with paper trading.