Glossary

Slippage: meaning, example and why it matters

The difference between the price you expected for an order and the price at which it was actually filled, common in fast markets and around news.

Worked example

You place an order expecting ₹500.00 but it fills at ₹500.60 in a fast market. That is ₹0.60 of slippage per share, or ₹600 on 1,000 shares.

Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.

Why it matters

Slippage is a cost that does not appear in the quoted price, and it is larger in fast markets.

Related terms

SpreadStop-loss order

See it in practice

Position size calculator

Frequently asked questions

Can slippage be in my favour?

Yes. A fill can be better than expected as well as worse.

Is this page investment advice?

No. Slippage is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.

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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.