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Slippage · price slippage

The difference between a trade's expected price and the price at which it actually executes.

Slippage happens when the market price changes between the moment an order is placed and when it's actually executed; this phenomenon is usually seen more in volatile markets or in low-liquidity assets.

Many trading platforms let you set a maximum acceptable slippage amount to prevent a trade from executing at too large a price difference.

To see other terms and learn more about the market, head back to the glossary.

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