What is Slippage?
The difference between the expected price of a trade and the price at which the trade is actually executed.
In-Depth Explanation
Practical Example
"You set a stop loss at 1.2400, but during a news event, the market gapped and your trade closed at 1.2395."
Related Terminology
Volatility
A measure of how much and how quickly the price of an asset changes over time.
Liquidity
The ease with which an asset can be bought or sold without affecting its price.
Pip
A "pip" (percentage in point) is the foundational unit of measurement in forex trading, representing the smallest standard price move in an exchange rate.
Spread
The spread is the difference between the bid (sell) price and the ask (buy) price. It is the immediate cost of executing a trade.
Tradeable Instruments Affected
Tactical How-To Guides
How to Start Trading in the UK — Step by Step
Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.
How to Trade Forex — Beginner's Guide
A complete beginner guide to forex trading. Learn about pips, lots, currency pairs, and how to place your first forex trade.
How to Day Trade — Step by Step
Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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