Terms starting with S

Slippage

The difference between the expected price of a trade and the actual execution price, which can be positive or negative.

Smart Order Routing (SOR)

An automated algorithm that analyzes multiple liquidity venues in real time to route each order to the source offering the best available execution.

Also: SOR

Spread

The difference between the bid and ask price of an asset, representing a core component of trading cost.

Stop Hunting

The alleged practice of a dealing desk broker deliberately triggering client stop-loss orders by temporarily manipulating prices, profiting from the resulting forced liquidations.

Straight-Through Processing (STP)

A fully automated order processing method where trades pass from initiation to settlement without manual intervention.

Also: STP

Swap

An overnight financing charge or credit applied to positions held past the daily rollover time, based on the interest rate differential between the two currencies in a pair.

Also: Rollover, Overnight Rate