#交易流动性 Trading Liquidity and Slippage: Core Relationship Analysis

• Liquidity: The level of activity in market buy and sell orders. High liquidity means a large volume of buy and sell orders and a small price spread (such as mainstream exchanges for Bitcoin), making it easy to execute orders; low liquidity means fewer buy and sell orders and a large price spread (such as niche cryptocurrencies), making it difficult to execute orders immediately.

• Slippage: The difference between the order price and the actual execution price. When liquidity is poor, large orders need to 'consume' multiple layers of limit orders, causing the execution price to deviate significantly from expectations (for example: using 1 million USDT to buy a small-cap coin, if the sell orders at 1000 USDT have only 10 layers, it needs to be filled at a higher price, and slippage could exceed 5%).

• Influencing Factors: Market capitalization of the coin, depth of the exchange, and order size. The larger the market cap and the more sufficient the liquidity of the exchange, the smaller the slippage; conversely, small orders in mainstream coin trading can ignore slippage, while large orders in niche coins have significant slippage.