Community Forex Questions
What is crypto slippage?
On this occasion, the good and bad methods of slippage are calculated. This slippage itself is somewhat of a difference from the price that has been offered according to the reality of the price that traders should take into account when making trading transactions. Price slippage is a piece of price information that needs to be observed directly and can occur at any time. A key point of this slippage condition is that it often leads to a market with high volatility values, one of which is crypto assets.
Crypto slippage refers to the difference between the expected price of a cryptocurrency trade and the price at which the trade is executed. It occurs when the actual execution price deviates from the price quoted at the time the trade was initiated. Slippage commonly happens in volatile markets or during periods of high trading activity, leading to unexpected outcomes for traders. Factors contributing to slippage include market liquidity, order size, and the speed of order execution. In illiquid markets or when executing large orders, slippage can be more pronounced, resulting in unfavorable prices for buyers or sellers. Traders often employ strategies such as limit orders or utilizing liquidity pools to minimize the impact of slippage on their trades.
Apr 21, 2022 23:52