What are the common causes of slippage in cryptocurrency exchanges?

3 answers

• Salomonsen TobiasenJul 15, 2022 · 3 years ago
  Slippage in cryptocurrency exchanges can occur due to several factors. One common cause is low liquidity in the market. When there are not enough buyers or sellers at a given price, it becomes difficult to execute trades without impacting the market price. Another cause of slippage is market volatility. Rapid price movements can lead to significant price changes between the time a trade is placed and the time it is executed. Additionally, slippage can be caused by delays in order processing. If there is a delay in order execution, the market price may change, resulting in slippage. It's important to note that slippage is a common occurrence in all financial markets, not just cryptocurrency exchanges. Traders should be aware of the potential for slippage and take it into account when placing trades.
  809

  405
• tim strongJun 28, 2020 · 5 years ago
  Slippage in cryptocurrency exchanges is often caused by low liquidity. When there are not enough buyers or sellers at a particular price, it can be challenging to execute trades without impacting the market price. Another common cause of slippage is market volatility. Cryptocurrency prices can be highly volatile, and rapid price movements can result in significant slippage. Additionally, delays in order processing can contribute to slippage. If there is a delay in executing an order, the market price may change, leading to slippage. Traders should be aware of these factors and consider them when trading on cryptocurrency exchanges.
  639

  213
• Isaac IsaacMay 29, 2022 · 3 years ago
  Slippage in cryptocurrency exchanges can be caused by various factors. One common cause is low liquidity in the market. When there are not enough buyers or sellers at a given price, it becomes difficult to execute trades without impacting the market price. Market volatility is another factor that can contribute to slippage. Cryptocurrency prices can experience rapid and significant price movements, resulting in slippage between the time a trade is placed and the time it is executed. Delays in order processing can also lead to slippage. If there is a delay in executing an order, the market price may change, causing slippage. Traders should be aware of these causes and take them into consideration when trading on cryptocurrency exchanges.
  746

  187