What Is the Mathematical Formula Used to Calculate Slippage as a Percentage? ▴ Learn

What Is the Mathematical Formula Used to Calculate Slippage as a Percentage?

Slippage as a percentage is calculated by taking the absolute difference between the expected price (E) and the executed price (A), dividing it by the expected price (E), and then multiplying by 100. The formula is: Percentage Slippage = $|(A – E) / E| times 100$.

A positive result indicates the magnitude of the price difference, which can be further classified as positive or negative slippage based on the direction of the price movement.

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