Orders & execution · Intermediate

Understanding Slippage

A 1-minute lesson from the MarketPro academy, one of 16 in orders and execution.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

Slippage refers to the difference between the price a trader expects to receive on an order and the price at which the order actually executes. It is a normal part of trading, particularly for market orders and triggered stop orders.

Why Slippage Happens

Prices can move between the moment an order is placed and the moment it actually reaches the market.
In fast-moving or low-liquidity conditions, there may not be enough volume available at the expected price to fill the entire order.
Significant news events or market gaps, such as a price jumping between one session's close and the next session's open, can cause especially large slippage.

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Slippage can work against a trader, resulting in a worse price than expected, but it can occasionally work in a trader's favor as well, resulting in a better price. It tends to be more pronounced in less liquid stocks, during volatile periods, or around major economic announcements.

Limit orders can help reduce the risk of unfavorable slippage by capping the acceptable execution price, though this comes with the tradeoff that the order may not fill at all if the market moves past the limit.

Being aware that the quoted price on a screen is not always the exact price an order will fill at is an important, realistic expectation to carry into any trade, especially in less liquid or fast-moving markets.

Lesson 5 of 16 in Orders and execution

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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