Slippage
The difference between the expected price of a trade and the price at which it is executed. It can occur during periods of higher volatility.
Related terms
Gapping
When the price of a security jumps to a new price not directly adjacent to the previous one, creating a gap between ticks on a price chart. Gapping often occurs when liquidity is low and the price is heavily affected by lighter trading.
Read full definitionMarket Order
An instruction to buy or sell immediately at the current market price. Market orders execute instantly but may not achieve the exact desired price due to market movement.
Read full definitionVolatility
The degree of price fluctuation in a currency over a specific period. Higher volatility means larger price swings and greater uncertainty in exchange rates, making it a key measure of FX market risk.
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Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
Read full definitionAt Best
An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
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An instruction given to a dealer to buy or sell at a specific price or better.
Read full definitionBroker
A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
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