Plain-English definitions, reviewed by an independent investor
Slippage
Slippage is the gap between the price you expected and the price you actually got filled at.
Slippage is the gap between the price you expected and the price you actually got filled at.
Slippage = Expected Price − Filled Price
Why it matters
It is a hidden cost of trading, worst in fast or thin markets.
Common confusion
It can dwarf a commission, especially on large or illiquid orders.
Frequently Asked Questions
Why does slippage happen?
Prices move between your click and the fill, or liquidity runs thin.
Reduce slippage?
Use limit orders and trade liquid names in calm conditions.