GLOSSARY TERM
Slippage
Slippage means the difference between the price you expected and the price you actually got when a trade was executed.
What does this mean in practice?
It can happen when the market moves quickly or when an investment has low liquidity. Even if no separate fee is shown, slippage can still increase the real cost of trading, because you end up paying a bit more or receiving a bit less than expected.
Example
You place a trade expecting to buy near €100, but the final execution happens at €100.20. That extra difference is slippage.
Why it matters
For most long-term investors it is usually small, but it helps explain why trading costs are not always limited to visible fees. It is one more reason to prefer simple, liquid investments and avoid unnecessary trading.
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