How it works
It can occur when prices move between order submission and execution or when there is not enough liquidity at the requested level. Slippage can be positive or negative.
What to check
Look at the broker's execution policy, order type and any statistics it publishes. Market orders prioritize execution rather than an exact price, while some pending orders can also slip when triggered.
- Distinguish price certainty from execution certainty
- Read execution policy
- Expect more slippage in fast markets
Limits and risks
Slippage is most noticeable in fast or thin markets. Stop-loss orders reduce decision delay but do not guarantee the exact stop price unless the product explicitly offers that protection.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.