Prisglidning

Prisglidning, often translated as price slide or price slippage, refers to a phenomenon in financial markets where the executed price of a trade differs from the expected price at the time the order was placed. This discrepancy can occur in various trading scenarios, most notably in high-frequency trading or when dealing with illiquid assets.

Several factors contribute to prisglidning. In rapidly moving markets, the price can change significantly between the moment an order is submitted and when it is matched with a counterparty. This is particularly true for market orders, which are executed at the best available price. Limit orders, on the other hand, aim to execute at a specified price or better, but they may not be filled at all if the market price moves beyond the limit.

Another cause can be the size of the order. Large orders, especially in less liquid markets, can move the price against the trader as they are executed. This is because the act of buying or selling a substantial quantity of an asset influences supply and demand dynamics, pushing the price further away from the initial entry point.

Prisglidning is a concern for traders as it can erode potential profits or increase losses. Strategies to mitigate prisglidning include using limit orders, breaking down large orders into smaller ones, or trading during periods of higher market liquidity. Understanding and accounting for potential prisglidning is an essential part of risk management in financial trading.