Slippage
The difference between expected trade price and actual execution price.
- Type
- trading
Slippage occurs when the market moves between order submission and execution, or when insufficient liquidity exists at the quoted price. Market orders experience slippage more than limit orders.
"Buying a large amount through a market order walks up the ask side, paying progressively higher prices and increasing slippage."
Related Terms
Market Order
→A type of order to buy or sell a security at the best available price in the current market.
Liquidity
→The ease with which a crypto asset can be bought or sold without affecting the market price.
Order Book
→A real-time list of buy and sell orders organized by price level on an exchange.
Spread
→The difference between the best bid and best ask in an order book.
All terms and definitions may update as the Cryptionary improves.
