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Slippage |
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Slippage The difference between estimated transactions costs and actual transactions costs. The difference usually represents revisions to price difference or spread and commission costs. Slippage In futures, the difference between the estimated and actual transaction costs. These costs may increase because of a broker's mistake, or because of reduced liquidity, increased transportation costs for the underlying commodity, or any number of other reasons. Some brokerages use algorithmic trading to avoid slippage. See also: All-In Cost. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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