Definition
The difference between the price you expected to trade at and the price you actually got.
The story
You send a market order to buy NQ (E-mini Nasdaq-100 futures) at 25,000, but in the time it takes to fill, the best available price moves to 25,002. Those two points are slippage. It tends to be bigger in fast markets, around major reports, and in thinly traded markets.
Why markets watch it
Slippage is a real cost of trading that doesn't show up in commissions.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms