How does slippage tolerance affect trading on PancakeSwap?

3 answers

• Dec 29, 2021 · 3 years ago
  Slippage tolerance plays a crucial role in trading on PancakeSwap. It refers to the maximum percentage difference between the expected price of a trade and the executed price. When you set a higher slippage tolerance, it allows for more flexibility in executing trades, especially in volatile market conditions. This means that even if the price of a token fluctuates, your trade can still be executed without getting rejected. On the other hand, setting a lower slippage tolerance may result in failed trades if the price moves significantly during the transaction. It's important to find the right balance between slippage tolerance and the risk of price fluctuations to ensure successful trades on PancakeSwap.
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• Dec 29, 2021 · 3 years ago
  Slippage tolerance is like a safety net for traders on PancakeSwap. It gives you the ability to set a maximum acceptable difference between the expected and executed prices of a trade. This is particularly useful in situations where the market is highly volatile and prices can change rapidly. By setting a higher slippage tolerance, you increase the chances of your trade being executed successfully, even if the price moves slightly. However, it's important to note that setting a higher slippage tolerance also increases the risk of getting a worse price than expected. So, it's a trade-off between flexibility and potential price impact.
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• Dec 29, 2021 · 3 years ago
  Slippage tolerance is an important concept in decentralized exchanges like PancakeSwap. It allows traders to account for price fluctuations during the execution of their trades. When you place an order on PancakeSwap, the slippage tolerance determines the acceptable difference between the expected price and the actual executed price. For example, if you set a slippage tolerance of 1%, it means that your trade will only be executed if the price difference is within 1%. If the price moves more than 1%, your trade will fail. It's worth noting that different tokens may require different slippage tolerances due to their liquidity and trading volume. So, it's essential to adjust your slippage tolerance accordingly to ensure successful trades on PancakeSwap.
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