What is Slippage?
The difference between the expected and actual execution price.
Details
Slippage is the gap between the price you expect when placing an order and the price actually filled, caused mainly by thin liquidity or large order size. In AMM trading, slippage grows with order size and pool depth, and sandwich attacks are possible. A reasonable slippage tolerance reduces bad fills, while one that is too small can make the transaction fail.
Key Points
- Expected vs. actual fill price, driven by liquidity
- Large orders increase slippage; sandwich attacks are possible
- Set a balanced slippage tolerance
FAQ
What is Slippage?
The difference between the expected and actual execution price.
What are the key points about Slippage?
Slippage is the gap between the price you expect when placing an order and the price actually filled, caused mainly by thin liquidity or large order size. In AMM trading, slippage grows with order size and pool depth, and sandwich attacks are possible. A reasonable slippage tolerance reduces bad fills, while one that is too small can make the transaction fail.
Is this term related to a specific coin?
It applies broadly across the crypto industry.
Related
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