Definition of Slippage:
Planning: Delay in meeting scheduled objectives and its associated financial impact on a campaign, program, or project.
Marketing: Ratio of (1) the number of potential consumers to the number of those who took advantage of a sales-promotion offer, or (2) number of consumers who purchased a product with an offer to the number of those redeemed the offer.
Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage can occur at any time but is most prevalent during periods of higher volatility when market orders are used. It can also occur when a large order is executed but there isn't enough volume at the chosen price to maintain the current bid/ask spread.
Slippage does not denote a negative or positive movement because any difference between the intended execution price and actual execution price qualifies as slippage. When an order is executed, the security is purchased or sold at the most favorable price offered by an exchange or other market maker. This can produce results that are more favorable, equal to or less favorable than the intended execution price. The final execution price vs. intended execution price can be categorized as positive slippage, no slippage and/or negative slippage.
Commodities or securities trading: Difference in the price at which a broker is instructed by a principal to execute an order, and the price at which the order is actually executed.
The action or process of something slipping or subsiding; the amount or extent of this.
Synonyms of Slippage
Avalanche, Coast, Comedown, Debasement, Decadence, Decadency, Declension, Declination, Decline, Deformation, Degeneracy, Degenerateness, Degeneration, Degradation, Demotion, Depravation, Depravedness, Depreciation, Derogation, Descent, Deterioration, Devolution, Downtrend, Downturn, Downward mobility, Downward trend, Drop, Dying, Ebb, Effeteness, Fading, Failing, Failure, Failure of nerve, Fall, Falling-off, Glide, Glissade, Glissando, Involution, Landslide, Landslip, Lapse, Loss of tone, Regression, Retrocession, Retrogradation, Retrogression, Sideslip, Skid, Slide, Slip, Slither, Slump, Snowslide, Snowslip, Subsidence, Wane, Shortfall, Deficiency, Shortage, Undersupply, Slippage
How to use Slippage in a sentence?
- Slippage refers to all situations in which a market participant receives a different trade execution price than intended.
- $16 million has been spent on cracks and slippage.
- Slippage occurs in all market venues, including equities, bonds, currencies and futures. .
- Slippage occurs when the bid/ask spread changes between the time a market order is requested and the time an exchange or other market maker executes the order.
Meaning of Slippage & Slippage Definition