What Is “Slippage” and How Does It Relate to Transaction Fee Volatility?

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. It primarily occurs in low-liquidity markets or when executing large market orders.

Transaction fee volatility can indirectly worsen slippage; if a low-fee transaction is delayed, the market price may move significantly before execution, increasing the actual slippage incurred by the trader.