slippage

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Securities:

1. price erosion between a quoted price and an execution due to selling pressure.

2. higher than expected transaction costs.


Corporate finance: shortfall in projected revenues, sales, earnings, or other target figure.


United Kingdom: excess expenditure of investment capital (in U.S.
called Burn Rate).

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1. Term referring to people who purchase a product intending to redeem a coupon, request a rebate, or send in for a premium, but fail to do so.

2. Ratio between people who actually take advantage of the type of promotion defined above and those who don't. This ratio is usually calculated as a percentage of total purchases. Most advertisers project a certain degree of slippage in their promotions in order to forecast the promotion's results; also known as slippage rate.

In built-up roofing, the lateral movement between adjacent plies; esp. occurs on sloping roofs.

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The difference between the expected price of a trade, and the price the trade actually executes at. Slippage often occurs during periods of higher volatility, when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade.

Slippage is a term often used in both forex and stock trading, and although the definition is the same for both, slippage occurs in different situations for each of these types of trading.

Investopedia Says:
In forex, slippage occurs when a limit order or stop loss occurs at a worse rate than originally set in the order. Slippage often occurs when volatility, perhaps due to news events, makes an order at a specific price impossible to execute. In this situation, most forex dealers will execute the trade at the next best price.

Slippage in the trading of stocks, often occurs when there is a change in spread. In this situation, a market order placed by the trader may get executed at a worse than expected price. In the case of a long trade, the ask may have increased. In the case of a short trade, the bid may have lowered. Traders can help to protect themselves from slippage by avoiding market orders when not necessary.

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See words rhyming with "slippage."

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