📉 What is Slippage
In the trading world, it's important to be aware of the term "Slippage."
But what does this concept mean? 🤔
✨ Simple Definition
- Slippage occurs when a buy or sell order is executed at a price different from the price you expected when placing the order.
📌 Why Does Slippage Happen?
There are several reasons that lead to slippage, the most notable being:
* Market Volatility: Cryptocurrencies experience rapid movements, meaning the price may change within a fraction of a second between pressing the execute button and confirming the trade.
* Low Liquidity: When there aren't enough buyers or sellers at the desired price, the order is executed at the nearest available price.
* Order Type: Market orders are executed at the best available price immediately, making them more susceptible to slippage.
🛡️ How to Avoid It?
Use limit orders to precisely set the price you want.
Avoid trading during major news events or periods of high volatility.
Choose platforms with high liquidity.
🧭 Summary
Slippage is not something to be afraid of, but it is part of the trading reality, especially in fast markets like crypto.
Understanding it and handling it smartly helps you make more accurate and professional trading decisions. ✅
