Slippage

Posted in Finance, Accounting and Economics Terms, Total Reads: 586
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Definition: Slippage

Slippage is used both in stock trading and forex. In stock trading it is the difference between the anticipated price of a trade, and the actual price at which the trade was executed.


Chances of slippage are higher when market orders limit is exhausted and also when large orders are fulfilled.


In forex, slippage is when a loss occurs at a worse rate than originally anticipated. Chances of slippage are higher in case of volatility. Thus most forex dealers execute the trade at the next best price.

 

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