đĄÂ Crypto 21:đ Slippage: When Your Trade Price Slips
Slippage = the difference between the expected price of a trade and the actual executed price. It happens more often than you think! đ
Why Slippage Happens:
1ïžâŁÂ Volatility: Price moves between order placement and execution âĄ
2ïžâŁÂ Low Liquidity: Not enough orders at your price level đ
3ïžâŁÂ Large Orders: Your order eats through multiple price levels đ
Example:
âą You see BTC at $50,000, click "Buy Market"
âą By the time order executes, price is $50,050
âą You paid $50 more per BTC = positive slippage (bad)
âą Could also work in your favor (negative slippage)
On Binance:
âą Market orders = slippage possible
âą Limit orders = NO slippage (but may not fill)
âą You can set "slippage tolerance" on some platforms
How to Minimize:
â
Use limit orders for large trades
â
Trade during high liquidity hours
â
Avoid trading during news events
â
Check order book depth first
#Slippage #CryptoTrading #OrderExecution #TradingBasics #Liquidity
