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 orders that are canceled before they trade.
  2. The difference between the expected price of a trade and the actual price at which it is executed.
  3. A technical indicator used to identify trend reversals.
  4. The time delay between sending an order and its receipt by the exchange.

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