Slippage: Slippage is the difference between the price you expected and the average price you actually got.

What it means

Slippage is the difference between the price you expected and the average price you actually got.

Example

You see YES at 30¢ and buy with a market order, but the book is thin and your average fill is 32¢. That 2¢ is slippage.

Practical tip

Reduce slippage with limit orders, smaller trade sizes and by trading in more liquid markets.