What is slippage?

Modified on Tue, 12 May at 8:10 PM

Definition

Slippage occurs when your trade is executed at a different price than the one requested due to changing market conditions.


Why does slippage occur?

Slippage is most common during:

  • High volatility (e.g., major news events)
  • Low liquidity periods (such as market open/close or weekly open)
  • Fast price movements where prices change rapidly

In these situations, there may be no available orders at your requested price, so the trade is filled at the next best available price.


How it works

  • You place an order at a specific price
  • The market moves quickly or liquidity is limited
  • Your order is executed at a different price due to lack of matching orders

Important Notes

  • Slippage can be either negative or positive
  • It can affect market orders, stop losses, and pending orders
  • It is a normal part of real market conditions, especially during volatile periods

Simulated Environment

Hantec Trader’s simulated environment is designed to replicate real market conditions, meaning slippage may occur just as it would in live trading.


Final Note

Understanding slippage helps traders manage expectations and risk more effectively during fast-moving market conditions.

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