Risk Management

Slippage

The gap between an order's intended trigger/execution price and the actual price at which it fills, common in fast-moving or illiquid markets.

Slippage is the gap between an order’s intended trigger price (such as a stop-loss level) and the actual price at which it executes. In fast-moving or illiquid conditions, the market can move quickly past the trigger level before the order fills, resulting in a worse execution price than intended.

See how slippage affects stop-loss orders specifically in Stop-Loss Explained: How to Protect Your Trading Capital.