Trading Basics
Slippage: Why You Get a Different Price Than Expected
Slippage occurs when execution price differs from your intended price — minimise it with the right order types.
Key rules
- Slippage occurs in fast markets and on illiquid instruments
- Market orders are most susceptible to slippage
- Limit orders prevent slippage at the cost of potential non-fill
- Avoid market orders during high-impact news events
- Factor expected slippage into your R:R calculations
Slippage happens when a market order fills at a different price because the market moved between submission and execution. In fast or illiquid markets, slippage can be significant and always goes against you.
Minimise slippage by using limit orders for entries, avoiding market orders around news releases, and trading instruments with high volume and tight spreads.