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Glossary · PSX term

Slippage.

Slippage is the difference between the price you expected and the price your order actually filled at.

Definition

It happens when prices move between placing and executing an order, or when liquidity is too thin to fill at one price. Market orders in volatile or illiquid PSX stocks are most exposed to slippage.

Worked example

You expect to buy at Rs. 100 but the order fills at Rs. 101.50, that Rs. 1.50 is slippage.

Related on PSX Clarity

Term
Market order
Term
Bid-ask spread
Term
Impact cost
Term
Liquidity

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