is executed, often without a limit order, or a stop loss occurs at a less favorable rate than originally set in the order. In this situation, a market order placed by the trader may get executed at a less favorable price than originally expected. Slippage is a term used in both forex and stock trading, and although the definition is the same for both, slippage occurs in different situations for each of these types of trading. Next Up, breaking down slippage slippage happens when a trader gets a different rate than expected between the time he enters the trade and the time the trade is made.
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Slippage is the discrepancy between the expected price of a trade, and the price at which the trade is executed.