## Why the order price differs from the expected: understanding slippage on the exchange
Every trader has encountered at least once the situation where the actual execution price did not match the one they expected. The culprit of this disappointment is slippage on the exchange, which can significantly affect the profitability of trades. But what lies behind this phenomenon and how can it be controlled?
## Pricing Mechanism: Spread and Liquidity
First of all, it is important to understand how market dynamics work. On any exchange, there is a spread between demand and supply — the gap between t
View OriginalEvery trader has encountered at least once the situation where the actual execution price did not match the one they expected. The culprit of this disappointment is slippage on the exchange, which can significantly affect the profitability of trades. But what lies behind this phenomenon and how can it be controlled?
## Pricing Mechanism: Spread and Liquidity
First of all, it is important to understand how market dynamics work. On any exchange, there is a spread between demand and supply — the gap between t