What is the meaning of slippage in the context of cryptocurrencies?

3 answers

• Cross McMillanMay 12, 2022 · 3 years ago
  Slippage in the context of cryptocurrencies refers to the difference between the expected price of a trade and the actual executed price. It typically occurs when there is a lack of liquidity in the market, causing orders to be filled at a different price than intended. Slippage can be both positive and negative, depending on whether the executed price is better or worse than expected. It is important to understand slippage because it can impact the profitability of trades, especially for large orders or in volatile markets. Traders should consider slippage when setting their trading strategies and managing risk.
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• Chennai ChiyangwaJun 22, 2020 · 5 years ago
  Slippage in cryptocurrencies is like when you order a pizza and expect to pay $10, but when it arrives, the delivery guy tells you it's $12. It's that difference between what you expected and what you actually get. In trading, slippage happens because the market is constantly changing, and your order might not get filled at the exact price you wanted. It can be frustrating, but it's a reality of trading. To minimize slippage, you can use limit orders instead of market orders, and be aware of the liquidity of the market you're trading in.
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• Amit RawatOct 20, 2022 · 3 years ago
  Slippage is a common occurrence in the world of cryptocurrencies. It happens when the price at which you want to buy or sell a cryptocurrency is different from the price at which your order gets executed. This can be due to various factors, such as market volatility, low liquidity, or delays in order processing. Slippage can have a significant impact on your trading results, especially if you're trading large volumes or in fast-moving markets. To minimize slippage, it's important to use advanced trading tools and strategies, such as limit orders and stop-loss orders. By using these tools, you can have more control over the execution of your trades and reduce the impact of slippage on your overall trading performance.
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