📖 Financial Lexicon Term
What is Slippage?
The difference between the expected price of a trade and the actual execution price. Most common during high volatility or low liquidity periods.
Detailed Explanation
Slippage occurs when the exact price requested in a market order is no longer available by the time the order packet reaches the matching engine. The engine is forced to fill your order at the next best tick, resulting in a slightly different fill price.
💡 Practical Trading Example
You click buy on gold at $2,010 during a high-impact news release, but due to high volatility, your order is filled (slipped) at $2,012.