{"id":61670,"date":"2026-09-03T17:03:48","date_gmt":"2026-09-03T09:03:48","guid":{"rendered":"https:\/\/www.vtmarkets.com\/en-asia\/uncategorized\/slippage-definition\/"},"modified":"2026-09-03T17:03:48","modified_gmt":"2026-09-03T09:03:48","slug":"slippage-definition","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/trading-glossary\/slippage-definition\/","title":{"rendered":"Slippage Definition"},"content":{"rendered":"

What Is Slippage?<\/strong><\/h2>\n

You set your entry. You click execute. The trade fills but not at the price you expected. That gap between intention and reality is slippage<\/strong>, and for manual traders, it is one of the most costly and misunderstood phenomena in financial markets.<\/p>\n

Slippage<\/strong> is the variation between the anticipated trade price and the actual executed price. It occurs when the price at which you intend to enter or exit a position differs from the price at which your order is ultimately filled. This discrepancy happens silently and is most commonly experienced in forex and futures markets, where prices move continuously, making execution at a guaranteed price impossible under all conditions.<\/p>\n

What Causes Slippage?<\/strong><\/h2>\n

Understanding the slippage meaning goes beyond its definition. Knowing what triggers, it is what allows traders to manage it effectively.<\/p>\n

Market Volatility<\/strong><\/h3>\n

The most common cause is sudden, sharp price movement. During high-impact events \u2014 central bank decisions, non-farm payrolls, or geopolitical shocks \u2014 prices move so quickly that by the time your order reaches the market, the level you targeted has already gone.<\/p>\n

Low Market Liquidity<\/strong><\/h3>\n

In thinly traded markets \u2014 exotic currency pairs, off-hours sessions, or illiquid instruments \u2014 there may not be enough buyers or sellers at your desired price to fill the entire order. The remainder fills at the next available level, creating slippage across the position.<\/p>\n

Order Size<\/strong><\/h3>\n

Large orders are more susceptible. When your position size exceeds available liquidity at a given price, the remainder fills progressively at less favourable levels, a phenomenon known as market impact<\/strong>.<\/p>\n

Slow Execution<\/strong><\/h3>\n

In manual trading, speed matters. Platform latency, poor connectivity, or broker-side delays widen the window during which price can move between your intended and actual fill.<\/p>\n

Positive vs. Negative Slippage<\/strong><\/h2>\n

Not all slippage works against you:<\/p>\n

Negative slippage<\/strong> \u2014 Your order fills at a worse price than expected. A buy fills higher than intended; a sell fills lower. This is the most common experience during volatile conditions and directly increases your trading cost.<\/p>\n

Positive slippage<\/strong> \u2014 Your order fills at a better price than expected. While welcome, it is far less common and should never be relied upon as part of any strategy.<\/p>\n

How to Reduce Slippage in Manual Trading<\/strong><\/h2>\n