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# What Is Slippage in Trading? (And How to Reduce It)
- URL: https://www.flltlt.com/blog/slippage-in-trading/
- Published: 2026-10-27T15:28:09.000Z
- Updated: 2026-10-27T17:39:34.000Z
- Description: What slippage is, what causes it, how much it really costs across many trades and practical ways to reduce it.
- Author: Fulltilt
- Tags: Trading Glossary, Futures Trading

**The short answer:** Slippage is the difference between the price you expected and the price your order actually filled at. It happens most with market and stop-market orders in fast or thin markets. On MNQ, one point of slippage costs $2 per contract. That sounds small, but across hundreds of trades it can turn a slightly profitable strategy into a losing one.

## Key takeaways

- Slippage = expected price − actual fill price.
- It's most common during news, at the open and in thin overnight markets.
- Market and stop orders can slip. Limit orders can't, but may not fill.
- Track it. It's a real cost, like commissions.
- Build a tick or two of slippage into your sizing.

## What causes slippage?

![Where slippage comes from: fast markets, thin liquidity, order type and size.](https://storage.ghost.io/c/a0/84/a0847890-aa24-4d5e-b6dd-8a7b42022bb3/content/images/2026/10/slippage-sources.png)

## How much can slippage cost?

| Slippage per trade       | Contracts | Cost per trade | Cost over 100 trades |
| ------------------------ | --------- | -------------- | -------------------- |
| 1 point MNQ ($2/pt)      | 4         | $8             | $800                 |
| 1 tick ES ($12.50)       | 1         | $12.50         | $1,250               |
| 2 ticks MES ($1.25 each) | 5         | $12.50         | $1,250               |

If a strategy's [expectancy](https://www.flltlt.com/blog/trading-expectancy/) is +$15 a trade before costs, $8 to $12 of slippage takes most of it.

## Is slippage always bad?

**No. Positive slippage happens too**, when you fill at a better price than expected. But on stops during fast moves, it's usually against you, because everyone is trying to get out at once.

## How can you reduce slippage?

- **Use** [**limit orders**](https://www.flltlt.com/blog/market-vs-limit-orders/) for entries and targets where the exact price matters.
- **Avoid entering right at big data releases.** Spreads widen and fills jump.
- **Trade liquid contracts and hours.** Index futures during U.S. regular hours have deep order books.
- **Keep stops as stop-market.** A little slippage on a stop is better than no fill.
- **Size for it.** Add a tick or two to your stop distance when [sizing](https://www.flltlt.com/blog/position-sizing-futures/).

## Does slippage happen in prop firm accounts?

**Yes, and often on purpose.** Many simulated funded accounts model slippage on market and stop orders so results are closer to live trading. Expect it in evaluations too.

> **From the desk** Indy trades MNQ and records results in points on [Day Trader Income](https://www.daytraderincome.com/). Comparing planned stop to actual fill, in points, is a quick way to see how much slippage is really costing.

## The bottom line

Slippage is a cost you can't avoid completely but can reduce: trade liquid hours, use limit orders where price matters, avoid the second after big news and size with a small buffer. Then track it, because what you don't measure quietly eats your edge.

## FAQ

### What is slippage in trading?

Slippage is the difference between the price you expected and the price your order filled at.

### What causes slippage?

Fast markets, thin liquidity, market and stop-market orders, and large order sizes are the most common causes.

### Can limit orders slip?

No. A limit order only fills at your price or better, but it may not fill at all.

### How do I reduce slippage?

Trade liquid contracts during busy hours, avoid entering right at major data releases, use limit orders where price matters and include a small buffer when sizing.