Slippage is the difference between a quoted trade price and the price at the time the order is filled. A price increase that happens before executing an order is considered negative slippage, whereas a price decrease is considered positive slippage for purchase orders. The negative and positive for sell orders are inverse. Slippage, to varying degrees, is a concern in all financial markets, including forex and the stock market. Slippage is a worry in the cryptocurrency space due to the market's high volatility combined with delayed order processing on blockchains. Slippage can also occur as a result of insufficient order book depth to maintain big orders in illiquid assets, resulting in a "split order" divided into separate price points. Traders can do a market analysis before placing orders and use limited orders to decrease risk slippage.
