Slippage

Order Types

The difference between the expected execution price and the actual fill price. Occurs with market orders in fast-moving or illiquid markets. Higher for less liquid securities.

Related Terms

Market Order

An order to buy or sell immediately at the best available price.

Liquidity

How easily a security can be bought or sold without significantly affecting its price.

Spread

The difference between the bid and ask price.

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Order Types Demystified

Level 1: Foundation · 18 min