What Is Slippage in Copy Trading?
July 4, 2026 · 5 min read
Quick answer
Slippage is the difference between the price when a trade signal is generated and the price your copied order actually fills at. It happens because prices move in the moment between the leader trading and your order reaching the market, and it is larger on fast-moving or wide-spread instruments like some options. RelayTrades lets you set slippage protection so a copied order is skipped or capped if it would fill too far from the signal price, and it applies your other limits before any order is placed.
Part of the complete guide to copy trading.
Slippage is one of the most important and least understood costs in copy trading. It is not a fee, it is the price you actually get versus the price you expected, and understanding it helps you set realistic expectations for any strategy you copy.
Why slippage happens
There is always a small gap in time between a trader placing a trade and your copied order reaching the market. Prices move in that gap. The faster the instrument moves and the wider its bid-ask spread, the more the fill price can drift from the signal price. Some options, especially thinly traded ones, have wide spreads and can slip more than liquid stocks.
How RelayTrades handles slippage
- Slippage protection: set a tolerance, and a copied order is capped or skipped if it would fill too far from the signal price.
- Limits applied first: your sizing multiplier, maximum position size, and exposure caps are checked before any order is placed.
- You decide the tradeoff: prioritize getting filled, or prioritize price, depending on the strategy and instrument.
Slippage protection lets you decide how far from the signal price you are willing to fill. Beyond that, the copied order is capped or skipped.
What to keep in mind
Slippage cannot be eliminated, only bounded. There is a natural tradeoff: an order that prioritizes filling can accept more slippage, while an order that prioritizes price may not fill at all if the market moves away. Pick based on what matters more for the strategy you are copying. Copy trading does not remove market risk, and past performance is not indicative of future results.
Frequently asked questions
Related reading
What Happens If a Copy Trade Fails?
If a copied trade cannot be placed, RelayTrades logs the reason, retries transient errors, and notifies you. Common causes: buying power, no position to close, a risk limit, or a closed market.
Read moreCopy Trading Risks and How to Manage Them
The main copy trading risks are market risk, over-sizing, slippage, over-concentration, and over-trusting a track record. Here is how to manage each one.
Read moreHow Position Sizing and Risk Limits Work in Copy Trading
Position sizing and server-side risk limits keep a copied trade from blowing up your account. Here is how multipliers, caps, and the kill switch work.
Read moreOr read the complete guide to copy trading and browse the glossary.
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Get startedRelayTrades provides software and automation support, not investment advice or capital management. All trading involves risk; past performance is not indicative of future results.