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What is slippage in cryptocurrency trading and how does it affect prices?

avatarThales P. ScarpatoDec 28, 2021 · 3 years ago3 answers

Can you explain what slippage means in the context of cryptocurrency trading and how it can impact the prices?

What is slippage in cryptocurrency trading and how does it affect prices?

3 answers

  • avatarDec 28, 2021 · 3 years ago
    Slippage in cryptocurrency trading refers to the difference between the expected price of a trade and the actual executed price. It occurs when there is a delay between the time a trade is placed and the time it is executed. Slippage can occur due to various factors, such as market volatility, liquidity, and order size. When slippage happens, it can affect the overall profitability of a trade, especially for large orders or in fast-moving markets. Traders should be aware of slippage and take it into consideration when placing trades to avoid unexpected price movements and potential losses.
  • avatarDec 28, 2021 · 3 years ago
    Slippage in cryptocurrency trading is like when you order a pizza online and the delivery takes longer than expected. You might have expected to pay a certain price for the pizza, but by the time it arrives, the price has changed. In cryptocurrency trading, slippage happens when the price you expect to buy or sell a cryptocurrency at is different from the actual executed price. This can happen because the market is moving quickly or because there is not enough liquidity to fill your order at the desired price. Slippage can affect prices by causing them to move in unexpected ways, making it harder to predict and profit from trading.
  • avatarDec 28, 2021 · 3 years ago
    Slippage in cryptocurrency trading is an important concept to understand, especially for traders. It refers to the difference between the expected price of a trade and the price at which the trade is actually executed. Slippage can occur in both buying and selling orders. It can be caused by various factors, such as market volatility, order size, and liquidity. Slippage can affect prices by causing them to deviate from the expected levels. This can lead to unexpected losses or missed opportunities for traders. At BYDFi, we strive to provide our users with a seamless trading experience and minimize slippage as much as possible through advanced order matching algorithms and deep liquidity pools.