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Day 25 of 100: Understanding Slippage in Crypto Trading
Have you ever placed a trade, only to see the final price slightly different from what you expected? That’s slippage—and it’s something every trader should understand.
What is Slippage?
Slippage is the difference between the expected price of a trade and the price at which it is actually executed. It usually happens during high volatility or low liquidity.
Example:
You try to buy $BTC at $90,000, but it gets filled at $90,050. That $50 difference is slippage.
Why It Matters:
High slippage can eat into your profits or increase your losses.
Using limit orders instead of market orders can help you control slippage.
On Binance, you can set a maximum slippage tolerance in advanced trading or DeFi settings.
Tip of the Day:
Always check market depth and liquidity before placing large orders. If the order book is thin, expect higher slippage!
#Day25 #Understandingslippageincrypto
Have you ever placed a trade, only to see the final price slightly different from what you expected? That’s slippage—and it’s something every trader should understand.
What is Slippage?
Slippage is the difference between the expected price of a trade and the price at which it is actually executed. It usually happens during high volatility or low liquidity.
Example:
You try to buy $BTC at $90,000, but it gets filled at $90,050. That $50 difference is slippage.
Why It Matters:
High slippage can eat into your profits or increase your losses.
Using limit orders instead of market orders can help you control slippage.
On Binance, you can set a maximum slippage tolerance in advanced trading or DeFi settings.
Tip of the Day:
Always check market depth and liquidity before placing large orders. If the order book is thin, expect higher slippage!
#Day25 #Understandingslippageincrypto
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