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🔄 What is Slippage?
Slippage is the difference between the expected price for executing a trade and the actual price at which the trade is executed.
📉 It usually occurs in highly volatile markets or during low liquidity, where prices change rapidly before the order is completed.
📌 Quick Example:
I wanted to buy a coin at $100, but the trade was executed at $101.2. This difference ($1.2) is negative slippage.
However, slippage can also be positive if the trade is executed at a better price than expected ✅.
💡 How to avoid or reduce it?
Use limit orders instead of market orders.
Avoid trading during unexpected news or extreme volatility.
Monitor market depth and liquidity.
📊 Slippage is a normal occurrence in the markets, but understanding it helps you improve your decisions and reduce risks.
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