What is Slippage

What is Slippage

August 25, 2019 0 By Luis Garrison


Welcome to OptionRally Academy, I’m Amy Anderson
with the Term of the day. Today we are going to talk about Slippage. Slippage is the difference between the expected
filled price of the trader and the actual price filled. In the forex market, this may
be caused by an ineffective broker, increased liquidity, and fast markets. Although the
forex market is very liquid and because of this there are limited amounts of slippage.
Slippage often occurs when volatility, (perhaps due to market events), makes an order at a
specific price impossible to execute. In this situation, most forex dealers will execute
the trade at the next best price. When stock trading this often occurs when there is a
change in spread. In this situation, a market order placed by the trader may get executed
at a worse than expected price. Thank you for joining me for the term of the
day, join me for a new term every day. You can also follow on my Youtube channel
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