Slippage

Slippage is the difference between the expected price of a trade and the actual price at which it is executed. It typically occurs in markets with low liquidity or during periods of high volatility, where price movements happen between the moment an order is placed and when it is filled. Slippage can be positive (better price than expected) or negative (worse price). In decentralized exchanges, users can often set a maximum slippage tolerance to limit how much price deviation they are willing to accept.