Glossary term
Slippage
The difference between the expected execution price and the price actually filled; a major cost in thin or fast-moving markets.
Slippage is the difference between the price a trader expects and the price at which an order actually fills. It grows in thin or fast-moving markets, where the act of trading itself moves the price against the order. Slippage is a real and often underestimated cost that erodes the gap between backtested and live returns, especially in low-liquidity prediction markets and options. See Liquidity (Prediction Markets) and Prediction Market Risk 101.