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 price

  • High volatility — prices move while your order processes

  • Large order sizes — especially on small coins

How Slippage Affects You:

  • You pay more (buying) or receive less (selling)

  • Your stop-loss triggers earlier

  • Profit 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