Slippage
Slippage is the difference between the expected price of an order and the price at which it is executed.
Full explanation
Slippage occurs when a forex order is filled at a different price from the one requested or expected. It can be positive or negative, meaning the execution price may be more or less favourable.
It is more common when prices move quickly or market liquidity is limited, such as around an economic release or at a session boundary. Slippage differs from the spread, which is the gap between the bid and ask prices, although both affect the final cost of a transaction.
Example: A trader submits a market order to buy EUR/USD at 1.1800 during a major data release, but the order is filled at 1.1804 because prices moved rapidly.
Why traders watch it
Slippage can change an order’s entry or exit price, affecting its cost, risk and final result.
Trading considerations
- Market orders may experience slippage because they prioritise execution over price.
- Fast markets and low liquidity can increase the difference between expected and executed prices.
- Limit orders control the acceptable price but may not be filled.
Educational guidance only — never a trading signal or recommendation.
Related indicators
Liquidity
Liquidity describes how easily you can buy or sell without moving the price. Deep liquidity means tight spreads, reliable fills and orderly movement. Thin liquidity means wider spreads, slippage and sudden jumps. Liquidity varies through the day, peaking when London and New York overlap and thinning during the late Asian session, holidays and the minutes around major releases.
Volatility
Volatility describes how much price moves over a given period. High volatility means larger, faster swings and wider ranges; low volatility means quiet, compressed trading. Volatility is not direction — a market can be highly volatile while going nowhere. It rises around major news, session opens and central-bank decisions, and it decides how far stops and targets need to sit.