🛠 Reasons why #Futures often experiences slippage:
1. Liquidity is not strong enough at that moment 🔥
When you place an order (whether #Long or #Short ), if the volume of buy/sell orders at the price you want to match is not sufficient, the system automatically pulls down/pushes up to the nearest price to match your entire order.
Placed 100 $BTC but at that price, there are only 20 BTC waiting? => The remaining part has to accept a higher (or lower) price.
2. The Futures market is extremely sensitive to fluctuations 🚀
Futures use high leverage, so even a slight movement can cause prices to spike wildly.
The massive leverage volume causes prices to "jerk" continuously, leading to when the order enters => not matching the expected price.
3. The trading bot's speed is faster than a regular person ⚡
On Futures, HFT (High Frequency Trading) bots operate 24/7.
They snatch orders in microseconds before you, causing prices to jump or drop before you can react.
4. When stop-loss is triggered, liquidation is triggered => terrifying slippage 🚑
When there is a strong crash or mass stop-loss triggering, thousands of orders explode at the same time => the system prioritizes whoever is faster.
If you do not use limit orders, but market order or regular stop-loss, you will be pushed out at a worse price than expected.