how much slippage in op buying

varun

hi frnds .. how much slippage cn i expect if i deploy an option buying strategy ?

Ramneet

Slippages depends on many factors including but not limited to the strike, its liquidity and volatility in market. As a rule of thumb you may include 0.5% as slippage for option selling strategies and 1% for option buying strategies.

We recommend that at the end of the month you check your realized slippages and use that as number for your backtest results in the future.