Disclaimer: The information in this Help Center is for general educational and informational purposes only. It does not constitute financial, investment, legal, or tax advice, or a recommendation to trade or invest. Before making any trading or investment decisions, consider whether they are appropriate for your objectives, financial situation, and needs.
Why your trade may not always execute at the price you see.
Slippage is a normal and expected part of trading the financial markets. It happens to all traders at some point. If you’ve ever placed a trade and noticed that it was filled at a slightly different price than what you saw on your screen, that’s likely due to slippage.
What is slippage in trading?
Slippage happens when your trade is executed at a different price than the one you requested. This usually occurs during fast-moving markets when prices change quickly between the time you place an order and when it gets filled.
Why did my trade execute at a different price than I expected?
Here’s what’s happening behind the scenes:
When you place a market order, your broker fills it at the best available price at that moment. But because prices move constantly, especially during high volatility or low liquidity, the price may change by the time your order reaches the server.
This small difference is what we call slippage.
Top-of-Book pricing and its meaning:
Top-of-Book pricing refers to the best available price to buy or sell at a specific time.
The "top of the book" refers to the best Bid (buy) and best Ask (sell) price available in the market.
When you place a trade, you’re matched with these best prices first.
But if your trade size is large, or if prices change quickly, your order might “spill over” to the next best available price; this is when slippage occurs.
Is slippage normal during high market volatility or news releases?
Yes, slippage is very common when the market is moving fast, such as during:
Major economic news releases (e.g., interest rate decisions, NFP)
Geopolitical events (e.g., wars, elections, political instability)
Sudden market shocks
Low liquidity periods (e.g., before market close, holidays, or rollover period, typically around 5:00 PM server time)
In these situations, prices can jump quickly, making it harder to get your order filled at the exact price you saw. Slippage is a normal occurrence under such conditions and affects all types of traders.
How can I reduce or avoid slippage?
While you can't always prevent slippage, you can take steps to reduce it:
Consider avoiding trading during major news events if minimizing slippage is important to your strategy.
Use limit orders instead of market orders: limit orders give you more control over the execution price.
Set a maximum slippage tolerance (available on some platforms).
Trading during periods of higher market liquidity may reduce the likelihood of slippage (i.e, London, New York).
Use pending orders to predefine entry levels when possible.
Tip: If precise entry is important, avoid placing market orders in fast-moving markets.
Does slippage always mean I lose money?
Not always. Slippage can work for or against you.
If your trade is filled at a worse price, that’s called negative slippage (e.g., a buy order filled higher than expected).
If your trade is filled at a better price, that’s positive slippage (e.g., a buy order filled lower than expected).
So, while slippage can result in minor unexpected losses, it can also benefit you, especially in fast markets.