Slippage

Slippage refers to the difference between the expected price of a trade and the price at which the trade is actually executed. This phenomenon primarily occurs in volatile markets or when trading illiquid assets, where prices can change rapidly between the time an order is placed and the moment it is filled. While slippage can be either positive (executing at a better price) or negative (executing at a worse price), it is typically discussed in the context of negative outcomes for the trader.