// definition
Slippage
Reference price versus execution price
Short definition
The difference between a specified reference price and the price actually obtained, using an average if an order has several partial executions. Available quantities and price movements during order handling can affect it. The difference can favour or disadvantage the customer and is distinct from separately charged fees.
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Knowledge map
Related analyses
Primary sources
- SEC Investor.gov, executing an orderQuoted prices, price movements and improvement or deterioration at execution.
- SEC Investor.gov, understanding order typesParts of a large order can execute at different prices when quantities are limited.