Glossary
Slippage
The difference between the price a trader expected and the price at which the order was actually filled.
Slippage happens when an order fills at a different price than the one shown when it was placed. It is most common with market orders, which take whatever prices are available in the order book.
It tends to grow when liquidity is thin, when an order is large compared with the orders waiting near the current price, and during fast moves around news. It can also work in the trader’s favor, though that is less common.
A limit order avoids slippage beyond the chosen price, at the cost that it may fill only partly or not at all.
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For education only, not financial advice. Crypto assets and stocks are volatile, and leveraged positions can lose more than the money you put in.