Slippage refers to the difference between the expected price of a trade and the actual price at which the trade is executed. This phenomenon often occurs during periods of high volatility or when large orders are placed in thinly traded markets.When you place a buy or sell order, you may expect to execute it at a certain price. However, due to fluctuating market conditions or the speed at which the order is filled, the final execution price may differ. Slippage can be positive or negative. Positive slippage happens when a trade is executed at a better price than anticipated, while negative slippage occurs when the execution price is worse. To minimize slippage, traders can use limit orders, which set a specific price at which they are willing to buy or sell. This can help ensure that trades are executed at the desired price, although it may also result in missed opportunities if the market moves quickly.