The difference between the expected price of a trade and the actual price at which the trade is executed. Slippage typically occurs due to market volatility, low liquidity, or delays in order execution.
From 'slip' (Middle English slippen, meaning to move smoothly) plus suffix '-age'. Originally referred to mechanical slipping, adopted in finance in the 1970s to describe the 'slipping' of prices between order placement and execution.
Slippage is like trying to catch a moving train - the faster the market is moving or the bigger your trade, the more likely you are to 'miss' your target price and pay more (or receive less) than expected!
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