Slippage is the difference between the price you expect to trade at and the price your order actually executes. This happens when a trading platform can’t fill your order at your specified price, often due to volatile market conditions or order execution delays.

For crypto asset traders, slippage adds another layer of uncertainty to an already volatile market. Understanding this phenomenon is crucial to managing its effects and refining your trading strategies.

This article explores the concept of slippage, its causes, and practical steps to mitigate its impact on your trading outcomes.

What Is Slippage?

Slippage occurs when a trade executes at a different price than expected. It can work in your favor (positive slippage) or against you (negative slippage). Sometimes, there’s no slippage, and the trade executes at exactly the price you wanted.

Why Does Slippage Happen?

Slippage happens because of shifts in the bid/ask spread – the difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask).

If a trader places an order and cannot be matched at the desired price, the market moves to the next available pri…

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