What does slippage mean in trading?

Slippage is the difference between a market participant's intended and actual trade execution prices. Slippage occurs when you make a trade, and the price is higher or lower than expected for buying and selling respectively.

Slippage occurs when the bid/ask spread changes between the time a market order is submitted and when an exchange or other market-maker executes the order.

Slippage exists in every market, including equities, bonds, currencies, and futures.

In the case of limit orders, traders are vulnerable to slippage because they might permit a trade at a lower price than anticipated.

Traders can use limit and stop-limit orders to avoid slippage by preventing transactions at or below a specified price.

Stop-loss orders may be used to avoid slippage when the price of a stock is declining.

It's also critical not to make trades during major news stories, as they may provide considerable opportunity for slippage.