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What is slippage?

Updated over 8 months ago

Slippage is the difference between the expected execution price and the actual execution price. It occurs during high volatility, low liquidity, or market gaps.

  • Positive slippage = better fill

  • Negative slippage = worse fill

You can reduce slippage by using limit orders, trading during high-liquidity sessions, and avoiding market orders during major news events. Even automated or stop orders may experience slippage in extreme conditions. This is a market characteristic rather than a platform-specific issue.

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