What Is Slippage and How Is It Related to a Wide Bid-Offer Spread? ⎊ Path

What Is Slippage and How Is It Related to a Wide Bid-Offer Spread?

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. It is common in volatile or low-liquidity markets.

A wide bid-offer spread is a key indicator that a market is susceptible to slippage, especially for large orders. The wider the spread, the more likely a large order will "walk the book" and execute at unfavorable prices.

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