easy · Order Flow Analysis market-mechanics-execution

What is 'slippage' as recorded in the context of order execution on the tape?

  1. The percentage of all submitted orders that are canceled by the trader before they ever trade.
  2. The difference between the expected price of a trade and the actual price at which it is executed.
  3. A technical momentum indicator commonly used by traders to identify potential trend reversals.
  4. The time delay between when an order is sent by the trader and when it is finally received by the exchange.

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