Why Does Slippage Happen?
- Market Volatility: Rapid price movements in volatile markets often result in orders being executed at unexpected prices.
- Order Size: Large orders can experience slippage, especially in thin markets with limited buyers or sellers.
- Execution Speed: The time between placing and executing an order can lead to slippage, particularly in fast-moving markets.
- Order Type: The type of order market or limit impacts the likelihood of slippage.
