#Slippage

Beginners often ask, why is my order executed at a different price than I expected?.

usually occurs in trading with the 'market order' method.

Slippage in the crypto market is the difference between the expected price when placing an order and the actual price executed. Slippage occurs due to market volatility or low liquidity, which causes orders to be executed at a different price than desired.

Types of Slippage in Crypto

1. Positive Slippage → Orders are executed at a better price than expected, for example wanting to buy at $10, but getting a price of $9.

2. Negative Slippage → Orders are executed at a worse price than expected, for example wanting to buy at $10, but getting a price of $11.

Causes of Slippage

High volatility → Prices change rapidly in a short time.

Low liquidity → Not enough orders in the order book to meet demand at the desired price.

Market order → Orders that are executed directly at the market price, so they can be subject to slippage if there is not enough liquidity.

How to Reduce Slippage

Use limit orders instead of market orders.

Trade in markets with high liquidity.

Avoid trading during big news or high volatility.

Use slippage tolerance on DEX (Decentralized Exchange) to limit the slippage received.

Slippage is a natural thing in the crypto market, but with the right strategy, it can be controlled so that it does not cause too much loss.