Define "Slippage" and How Firm Quotes Mitigate It ⎊ Path

Define “Slippage” and How Firm Quotes Mitigate It.

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. It is typically a negative outcome caused by market price movement during the execution process.

Firm quotes mitigate slippage because the Liquidity Provider is contractually obligated to execute at the quoted price, ensuring the client receives the expected price up to the quoted size.

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