Every time you hit "market buy" or "market sell," you're paying a price that doesn't show up on your commission receipt: slippage. Slippage is the difference between the price you expected to get and the price you actually received. It's invisible on individual trades — usually fractions of a cent — but across hundreds of trades, it compounds into a significant cost. ## What Is Slippage? When you place a market order, you're telling your broker "fill me at whatever the current price is." But the "current price" changes between the moment you click and the moment your order reaches the exchange and gets matched. **Example:** - You see BTC at $43,250.00 and click "Buy" - Your order reaches the exchange 50ms later - The best available ask is now $43,251.20 - You get filled at $43,251.20 - Slippage: $1.20 per unit On a 1 BTC position, that's $1.20. On 10 trades a day, that's $12. Over a month (22 trading days), that's $264 — just from slippage, before any commissions. ## Types of Slippage ### Execution Slippage The time delay between your order submission and execution. Caused by network latency, exchange matching engine speed, and broker routing delays. ### Liquidity Slippage When your order size exceeds the available liquidity at the best price. Your order "walks the book" — filling partially at each price level. The larger your order relative to the book depth, the worse the slippage. ### Volatility Slippage During fast markets (news events, liquidation cascades), prices move rapidly. Orders placed during these moments experience significantly more slippage because the market moves away from your expected price before execution. ## How Much Does Slippage Actually Cost? The impact depends on your trading style: | Trading Style | Trades/Month | Avg Slippage | Monthly Cost | |--------------|-------------|-------------|-------------| | Swing trader | 20 | $0.50 | $10 | | Day trader | 200 | $1.00 | $200 | | Scalper | 1,500 | $1.50 | $2,250 | | HFT | 10,000+ |