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Slippage is the difference between the price you set and actual execution price of an order. It can be caused by factors such as market volatility, liquidity, order size, or execution speed. Usually, orders are filled at your requested price, due to these factors, the execution price may vary from the price you set.

Slippage can be classified into positive slippage and negative slippage.

Positive slippage refers to the execution price being better than the price expected by the investor. Positive slippage can have beneficial effects on investors, potentially resulting in greater profits or reduced losses.

For example, if the take profit price of a 1 lot EURUSD buy position is set at 1.07260 and the final execution price is 1.07265, the positive slippage will be 5 USD [(1.07265-1.07260)*100,000].

Negative slippage refers to the execution price being worse than the price expected by the investor. This usually occurs during periods of high market volatility or slow execution speed. This can put investors at a disadvantage because their orders might be executed at a worse price, leading to increased losses.

For example, if the stop loss price of a 1 lot EURUSD buy position is set at 1.07260 and the final execution price is 1.07255, the negative slippage will be -5 USD [(1.07255-1.07260)*100,000].