NDD Glossary
RiskBeginner

Slippage

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

Last updated: February 1, 2026
1

A trader submits an order at a specific requested price.

2

During the time between order submission and execution, the market price moves.

3

The order executes at the new market price, which differs from the requested price.

4

If the execution price is worse than requested, it's negative slippage; if better, it's positive slippage.

5

Slippage is measured in pips or basis points and is a key component of total execution cost.