Order fills can occur at prices different from those anticipated due to several market characteristics. Slippage is a common factor, which refers to the difference between the expected price of a trade and the actual price at which the trade is executed. This may happen during periods of high volatility or low liquidity, where rapidly changing market conditions can affect available prices. Additionally, the type of order placed (e.g., market order vs. limit order) also plays a crucial role. Market orders are executed at the best available price, which may not always reflect the last listed price. Understanding these mechanisms is important for managing expectations and improving trading strategies.
Market Education