Slippage occurs when there is a difference between the expected price of a trade and the actual price at which the trade is executed. This can happen during periods of high volatility when market conditions change rapidly, or when there is low liquidity in the market.

For example, if you place a buy order at a specific price but the market moves before your order is filled, you may end up buying at a higher price than anticipated. Conversely, when selling, you might receive a lower price than expected.

Slippage can be categorized as positive or negative. Positive slippage occurs when you get a better price than expected, while negative slippage results in a worse price.

Understanding slippage is an inherent part of trading, and it can impact your overall trading performance. It is important to understand that slippage may occur in certain market conditions, and it cannot be fully avoided, particularly during periods of high volatility or low liquidity. While some strategies may reduce the likelihood of slippage, it is essential to be aware that there is no guarantee against it.