Small losses from executing trades at prices worse than the mid price (buying at ask, selling at bid).
Besides broker commissions, slippage is another main component of transaction costs.
The size of bid-ask spread and thereby slippage is inversely related to liquidity. Less liquid instruments have wider bid-ask spreads and are therefore more expensive to trade.
By remaining on this website or using its content, you confirm that you have read and agree with the Terms of Use Agreement.
We are not liable for any damages resulting from using this website. Any information may be inaccurate or incomplete. See full Limitation of Liability.
Content may include affiliate links, which means we may earn commission if you buy on the linked website. See full Affiliate and Referral Disclosure.
We use cookies and similar technology to improve user experience and analyze traffic. See full Cookie Policy.
See also Privacy Policy on how we collect and handle user data.
© 2024 Macroption