Slippage101

Slippage is that hidden cost you don’t notice until your trade fills — and you realize the price isn’t what you clicked.
What is Slippage?
Slippage happens when your trade executes at a different price than expected.
Example:
BTC is showing $106,151, you hit “Buy Market” — but your final fill is at $106,210.
That $59 difference? That’s slippage.
It’s not a bug. It’s how fast-moving markets work.
Why Does Slippage Happen?
Low liquidity — not enough buyers/sellers at your priceHigh volatility — prices move while your order processesLarge order sizes — especially on small coins
How Slippage Affects You:
You pay more (buying) or receive less (selling)Your stop-loss triggers earlierProfit margins shrink quietly
Real-World Example:
You market-buy $5,000 of a low-cap altcoin.
There’s only $1,000 of liquidity at your desired price.
The rest gets filled higher — and suddenly you’re in a -4% position from the start.
3 Ways to Avoid Slippage:
1. Use Limit Orders — you set the max price you’re willing to pay
2. Trade with high-liquidity pairs — like BTC/USDT or ETH/USDT
3. Avoid news spikes — slippage increases massively during volatile announcements
My Trading Habit:
Before placing a big trade, I always check the order book depth.
If the walls are thin, I either scale in smaller or use a limit order to avoid getting burned.
Slippage is silent, but it’s not harmless. Control it — or it controls your profits.
Follow @mythoughts — no hype, just thoughts.
#TradingTypes101 #Slippage101