Skip to content
Prediction Markets101

Slippage

Trading size that exceeds market depth moves the price against you.

Prediction Markets 101 editorial team Updated April 16, 2026 1 min read

Definition

Slippage is the difference between the expected price of a trade and the price you actually fill at. Large orders in thin markets cause high slippage.

Plain-English explanation

If you want to buy 10,000 shares but only 3,000 are available at the best ask, your order takes the remaining 7,000 from higher asks. Your average fill is above the initial best ask — that's slippage.

Example

You market-buy 10,000 YES. Best ask: 500 at $0.50. Next: 1,500 at $0.52. Next: 3,000 at $0.55. Next: 5,000 at $0.60. Your average fill: ~$0.57. Slippage: $0.07 vs the $0.50 you saw on-screen.