Slippage meaning in plain words
Slippage is the difference between the price you expected when you sent an order and the price at which the order was actually filled.
You see a price on the screen and press Buy or Sell. The order travels to the broker's server, and the price can move before it is filled. If the fill differs from the price you saw, that difference is slippage.
Slippage is a normal part of how markets work, especially in fast or thin markets. It is not automatically a sign of a problem with a platform. It does change your result, so it is worth understanding before you trade with real money.
Positive and negative slippage
Slippage can work for you or against you.
| Type | Buy order | Sell order | Effect on you |
|---|---|---|---|
| Positive slippage | Filled lower than expected | Filled higher than expected | Better price |
| Negative slippage | Filled higher than expected | Filled lower than expected | Worse price |
A fill at exactly the expected price has no slippage.
Slippage is usually measured in pips or points. A pip is the standard unit of price movement for a currency pair. See what is a pip and pips, points, pipettes. To turn a price difference into money for your position size, use the tools on the calculators page.
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Why slippage happens
News and volatility
Around major economic releases, such as central bank decisions or employment data, prices can move sharply in moments. Your order may reach the server after the price has already moved. Read more in volatility and fundamental analysis.
Gaps
A gap is a jump in price with no trading in between. Gaps often appear at the weekly open, after holidays, or after unexpected news. A pending order or stop loss caught inside a gap is filled at the next available price, which can be far from the level you set. See price gaps.
Liquidity
Liquidity is how much volume is available to trade near the current price. When liquidity is thin, for example outside the main trading sessions, in less traded pairs, or for large orders, there may not be enough volume at your price. The rest fills at the next price. See liquidity.
Order type
- Market orders fill at the best available price, so they can slip either way.
- Stop orders and stop losses become market orders when triggered, so they can slip too.
- Limit orders fill only at your price or better. They do not suffer negative slippage, but they may not fill at all.
- Stop-limit orders add a limit to a stop, which trades the risk of slippage for the risk of no fill.
How deviation settings work
In MetaTrader, how slippage is handled depends on the execution type of the symbol.
- Instant execution: the platform tries to fill at the quoted price. The order window can show a deviation setting, which is the maximum price difference you accept. If the price moves beyond it, the order is not filled at the new price, and you may receive a requote, which is an offer of a new price.
- Market execution: the order fills at the best available price, and a deviation field usually does not apply. You get a fill, but the price may slip.
A tight deviation means fewer surprises on price but more rejected orders. A wide deviation means more fills but a larger possible slip. The execution type for each symbol is shown in the platform's symbol specification. For details, see MetaTrader 4, MetaTrader 5 and broker execution models.
Precise notes for experienced traders
- Slippage is measured against the price at order submission. For a buy, that is the ask; for a sell, the bid. See bid and ask.
- Spread widening and slippage are different things. A wider spread raises the cost of entry at the quote. Slippage is movement away from the quote during execution. Both often occur together around news. See what is spread.
- Partial fills at several prices produce a volume-weighted average fill. The slippage is the gap between that average and the expected price.
- Slippage on stop losses matters most for risk. A stop defines a trigger level, not a guaranteed exit price. Your actual loss can exceed what you planned.
- Count slippage as part of your total cost of a trade, alongside spread, commission and swap.
Slippage and risk
Leveraged forex and CFD trading can lose money fast. Slippage can make losses larger than the stop loss you set, especially during news or gaps. Size positions with that in mind. See risk management. A demo account shows how orders behave, but demo fills may differ from live fills. See demo vs live.
Frequently asked questions
What is slippage in forex?
It is the difference between the price you expected and the price at which your order was filled.
Is positive slippage real?
Yes. If the price moves in your favour before the fill, a market or stop order can fill at a better price.
Can I avoid slippage completely?
No order type removes all risk. Limit orders avoid negative slippage, but they may not fill.
Does a stop loss protect me from slippage?
No. A stop loss becomes a market order when triggered and can fill beyond your level, especially in gaps.
What is a deviation setting?
In instant execution, it is the maximum price difference you accept. Beyond it, the order is not filled at the new price.