Slippage, Order Types, and Partial Fills Explained

When you trade, the price you see on the screen isn’t always the exact price you get. This is where slippage, order types, and partial fills come into play.

🎯 What is Slippage?

Slippage happens when your trade fills at a different price than expected. Example: You try to buy at $100, but it actually fills at $100.20. Why? Because prices move fast, and by the time your order hits the market, it might have changed. 👉 Slippage is common in fast-moving or low-volume markets.

📝 Order Types

Market Order — Buys/sells instantly at best available price. Fast, but may get slippage. Limit Order — You set the exact price. Safer, but may not fill. Stop Order — Activates once a trigger price is hit. Good for protection or breakouts. 👉 Example: Buy a stock at $50 using a limit order. If price jumps to $51 and never returns, you won’t fill — but you avoided overpaying.

🔄 What are Partial Fills?

Sometimes your order doesn’t fill all at once. Example: You want 100 shares at $20, but only 60 are available. You get a partial fill (60 shares at $20) and wait for the rest. 👉 Common in thinly traded stocks/options with low volume.

🧠 How to Handle These as a Beginner

1. Use limit orders to control your price.

2. Trade liquid markets with high volume.

3. Expect slippage in fast markets.

4. Don’t panic on partial fills — it’s normal.

🚀 Quick Takeaway

Slippage = price difference. Order types = market (fast), limit (controlled), stop (triggered). Partial fills = partial execution. 👉 Master these to place smarter, more controlled trades.

🔑 Next Lesson in Strategies & Tactics: Scalping vs. Swing Trading: Which Fits You Best?