Slippage

The difference between the expected price of a trade and the actual price at which it is executed. Slippage is most common during periods of high volatility, low liquidity, or when using market orders on fast-moving stocks. A trader expecting to sell at $50.00 might get filled at $49.85, losing $0.15 per share to slippage. Reducing slippage is a constant concern for active traders, who use limit orders, avoid illiquid names, and time entries carefully to minimize the gap.