Slippage is the difference between the price you expect when you place an order and the price at which it is actually filled. It happens in every market — currencies, shares, crypto — and is usually small, but at busy moments it can be significant.
Why it happens
Prices change constantly. Between the moment an order is sent and the moment it is executed, the best available price may have moved, or there may not be enough volume at the expected price to fill the whole order. The order is then filled at the next available price.
Positive and negative slippage
Slippage isn’t always bad. If the price moves in your favour before the fill, you may get a better price than expected — positive slippage. Negative slippage is when the fill is worse.
When slippage is most likely
- Around major news: data releases and central bank decisions can make prices jump. Our guide to the economic calendar shows when these are scheduled.
- Thin markets: quieter trading hours and less-traded pairs have fewer buyers and sellers.
- Price gaps: when markets reopen after a weekend, the first price can be far from the last one.
- Large orders: big trades can absorb all volume at one price level.
Stop orders and slippage
A standard stop-loss becomes a market order once triggered, so in a fast move it can fill beyond the stop level. Some providers offer guaranteed stops, usually for a fee; their terms explain the conditions.
Limiting slippage
- Use limit orders when the exact price matters more than getting filled.
- Be cautious about trading right as major news is released.
- Allow for slippage when planning risk — see forex risk management.
Background knowledge only, not trading advice.
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