Glossary · S
What is Slippage?
The difference between the price you expected and the price you actually got, usually on market and stop orders in fast markets.
In context
A stop-market order becomes a market order when it is triggered. In a fast market, especially around news, it can fill several ticks beyond your stop price. Your real loss can then be more than 1R. A 30-tick stop that fills 9 ticks worse on MGC is a 39-tick loss: about −1.3R. Always include a slippage allowance in the sizing calculation, and record actual slippage in your journal.
Learn it in depth
- Chapter 1: The Gold Futures Contract and the Trading Day
- Chapter 11: Putting It Together on Gold
- Chapter 12: Honest Research: Testing Ideas Without Fooling Yourself
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