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What is Slippage?
What is Slippage?
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Written by Upcomers
Updated over 11 months ago

Slippage in financial markets refers to the difference between the expected price of a trade and the actual price at which the trade is executed. It can occur due to:

  1. Market Volatility: During periods of high volatility, prices can change rapidly, leading to slippage.

  2. Order Size: Large orders can impact the market price, causing slippage.

  3. Liquidity: In markets with low liquidity, it may be difficult to execute trades at desired prices, resulting in slippage.

  4. Order Type: Market orders are more prone to slippage compared to limit orders, which set a maximum or minimum price for execution.

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