the.com/slippage
the gap between the price you saw and the price you got, courtesy of time itself.
means the difference between a trade's expected price and the price it actually executes at, usually because the market moved while your order was in flight.
from finance borrowed it from mechanical engineering, where slippage meant a gear or belt losing traction and failing to transmit motion cleanly, an apt metaphor for orders losing their grip on the quoted price.
crypto amplifierthin liquidity can turn slippage into a 10% haircut
not always badpositive slippage means you got a better price
algo trading fights itexecution algorithms exist purely to minimize it
for instance
flash crash 2010 — dow dropped 1000 points in minutes, orders filled far from quotes
gme squeeze 2021 — retail buyers saw fills wildly above displayed prices
uniswap swaps — low liquidity pools routinely show 5%+ slippage warnings