#Liquidity101 Slippage is the discrepancy between the price expected to be obtained when opening or closing a position and the actual price obtained.

Causes:

Slippage occurs primarily due to:

Rapid market movements: Volatility can cause prices to change significantly in a short period of time.

Low liquidity: When there is little trading volume at a given price, slippage may be greater.

News and events: Important announcements or unexpected events can lead to sharp price movements, increasing the risk of slippage.