Slippage: Live Trading | Definition, Example, and Real-Time Scenarios

Slippage is probably the enemy number one for short-term traders. What is slippage in live trading and how much slippage can you expect to have in live trading? What is slippage in real trading?

Slippage in trading is a hidden cost that is difficult to quantify. It’s the difference between a theoretical price and the price you get in live trading. In this article, we provide you with facts about slippage in live trading in a select choice of three different ETFs. Slippage is most likely lower than you realize.

First, let’s define what slippage in trading is:

What is slippage in trading?

Slippage is the difference between fictional results when backtesting strategies and the actual results in real life adjusting for commissions and transaction costs. It’s a “hidden” cost and is based on the transaction.

For example, a backtest might simulate an entry price of 38