Is slippage more common in high volatility cryptocurrencies compared to stocks?

3 answers

• John OlabanjiDec 19, 2021 · 4 years ago
  Slippage is indeed more common in high volatility cryptocurrencies compared to stocks. The rapid price movements and liquidity issues in the cryptocurrency market can lead to significant slippage, especially during times of extreme volatility. Traders should be aware of this risk and take appropriate measures to mitigate it, such as using limit orders and setting realistic expectations for execution prices.
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• McCarty GormsenMay 27, 2022 · 3 years ago
  Yes, slippage tends to be more prevalent in high volatility cryptocurrencies. The decentralized nature of cryptocurrencies and the lack of a central order book can contribute to increased slippage. Additionally, the relatively low liquidity of some cryptocurrencies can exacerbate the slippage issue. Traders should carefully consider these factors when trading high volatility cryptocurrencies to minimize the impact of slippage on their trades.
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• Hemant ChaudhariJan 12, 2023 · 3 years ago
  While slippage can occur in both cryptocurrencies and stocks, it is important to note that the extent of slippage can vary depending on the specific cryptocurrency or stock being traded. Factors such as market depth, order book liquidity, and trading volume can all influence the likelihood and severity of slippage. Therefore, it is not accurate to generalize that slippage is always more common in high volatility cryptocurrencies compared to stocks. Traders should evaluate the specific market conditions and liquidity of the asset they are trading to assess the potential impact of slippage.
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