What is slippage in crypto trading?
What Is Slippage in Crypto Trading?
Slippage is the difference between the price you expected when you placed an order and the price at which the order actually filled. It often happens in fast markets or when your order is large relative to available liquidity. For example, you might expect to buy at Rs 50,00,000 per Bitcoin but end up buying at Rs 50,20,000. That difference is slippage. Market orders are more likely to slip; limit orders control the worst price but may not fill.
How to Limit Slippage
On some platforms you can set a maximum slippage (e.g. 1%). If the market moves beyond that, the order is not executed. For large orders, split them or use limit orders. Slippage is usually higher for illiquid or volatile tokens.