Slippage

Slippage occurs when an order cannot be fully executed at the best available price because it is too large for available liquidity. Slippage occurs when an order cannot be fully executed at the desired price. A large buy order may partially fill at the best ask and then fill the rest at a higher price level. Slippage causes an order to execute across multiple price levels. Slippage causes one order to execute across multiple price levels rather than at a single price. After slippage, the final execution price becomes the new market price. Slippage is an implicit cost of executing large orders when liquidity is limited. A sell market order may be matched at progressively less favorable prices when there are insufficient buy offers at the best price.