Slippage is a term often used in both forex and stock trading, and although the definition is the same for both, slippage occurs in different situations for each of these types of trading.
In forex, slippage occurs when a limit order or stop loss occurs at a worse rate than originally set in the order. Slippage often occurs when volatility, perhaps due to news events, makes an order at a specific price impossible to execute. In this situation, most forex dealers will execute the trade at the next best price.
Slippage in the trading of stocks, often occurs when there is a change in spread. In this situation, a market order placed by the trader may get executed at a worse than expected price. In the case of a long trade, the ask may have increased. In the case of a short trade, the bid may have lowered. Traders can help to protect themselves from slippage by avoiding market orders when not necessary.
Investment dictionary. Academic. 2012.
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Slippage — is any undesired movement.Slippage can also refer to: *Slippage (book), the short story collection by Harlan Ellison. *Slippage (finance) *Project slippage … Wikipedia
Slippage — Slip page, n. The act of slipping; also, the amount of slipping. [1913 Webster] … The Collaborative International Dictionary of English
slippage — 1850, from SLIP (Cf. slip) (v.) + AGE (Cf. age) … Etymology dictionary
slippage — [slip′ij] n. 1. the act or an instance of slipping, as in meshing gear teeth 2. the amount of this 3. the resulting loss of motion or power, as in a chain or belt drive … English World dictionary
Slippage — The difference between estimated transaction costs and actual transaction costs. The difference is usually composed of revisions to price difference or spread and commission costs. The New York Times Financial Glossary * * * slippage slip‧page… … Financial and business terms
slippage — The difference between estimated transactions costs and actual transactions costs. The difference usually represents revisions to price difference or spread and commission costs. Bloomberg Financial Dictionary * * * slippage slip‧page [ˈslɪpɪdʒ]… … Financial and business terms
slippage — slip|page [ˈslıpıdʒ] n [U and C] formal 1.) failure to do something at the planned time, at the planned cost etc ▪ Slippage on any job will entail slippage on the overall project. 2.) when something becomes worse or lower slippage in/of ▪… … Dictionary of contemporary English
slippage — [[t]slɪ̱pɪʤ[/t]] slippages N VAR Slippage is a failure to maintain a steady position or rate of progress, so that a particular target or standard is not achieved. ...a substantial slippage in the value of sterling... We want to stop the slippage… … English dictionary
Slippage — Unter Slippage (engl.: verrutschen ) versteht man: in der Genetik das Verrutschen der DNA Polymerase bei der Replikation unter Schlaufenbildung des neusynthetisierten Stranges. Bei der Reparatur wird dann jedoch der Matrizenstrang erweitert,… … Deutsch Wikipedia
slippage — slip|page [ slıpıdʒ ] noun uncount the action of slipping or moving, or the amount by which something slips or moves a. a situation in which something is delayed or not achieved when it should be: Some slippage is acceptable as long as the final… … Usage of the words and phrases in modern English