Slippage
The difference between the price you expected and the price your order was actually filled at.
Slippage happens when price moves between the moment you send an order and the moment it is filled. It is most common in fast, thin markets, especially around big news or when liquidity is low.
It can work for you (positive slippage) or against you (negative slippage). A stop-loss in a market that is crashing straight through your level is where it usually hurts.
Slipping on a stop
- You hold a mini lot ($1 a pip) with a stop-loss at 1.0820.
- News hits and price plunges; your stop fills at 1.0815.
- Slippage: 5 pips, costing an extra 5 × $1 = $5.
Bottom line: You lost 35 pips instead of the planned 30.
Assuming a stop-loss guarantees the exact exit price. In a gap or spike it can fill worse.
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