What is slippage in crypto and how does it affect trading?

3 answers

• Etienne SauvageSep 11, 2022 · 3 years ago
  Slippage in crypto refers to the difference between the expected price of a trade and the actual executed price. It occurs when there is a delay between the time a trade is placed and the time it is executed. This delay can be caused by various factors such as market volatility, liquidity, and order size. Slippage can have both positive and negative effects on trading. In some cases, slippage can work in favor of the trader, resulting in a better executed price than expected. However, in most cases, slippage is considered unfavorable as it can lead to higher costs and reduced profitability. Traders should be aware of slippage and take measures to minimize its impact, such as using limit orders and trading during periods of high liquidity.
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• Lilian RibeiroFeb 28, 2025 · 5 months ago
  Slippage in crypto trading is like when you order a pizza online and the delivery takes longer than expected. It's the difference between the price you thought you were going to pay and the price you actually end up paying. In cryptocurrency trading, slippage happens because the market moves fast and the price can change between the time you place your order and the time it gets executed. This can result in you buying or selling at a higher or lower price than you intended. Slippage can affect your trading profits, so it's important to understand how it works and take steps to minimize its impact.
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• Nemo StreamsJul 31, 2024 · a year ago
  Slippage in crypto trading is a common phenomenon that can affect traders' profitability. When you place an order to buy or sell a cryptocurrency, the price you see on the screen may not be the price at which your order gets executed. This is because the market is constantly moving, and there can be a delay between the time you place your order and the time it gets filled. Slippage can occur when the price moves against you during this delay, resulting in a higher buying price or a lower selling price than you anticipated. To minimize slippage, you can use limit orders instead of market orders, set price alerts to monitor the market, and trade during periods of high liquidity. It's important to be aware of slippage and factor it into your trading strategy to avoid unexpected losses.
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