Technical Definition
Slippage
The difference between the expected price of a trade and the actual executed price, usually due to volatility or low liquidity.
By Crypto University Editorial
Market OrderVolatilityTWAP (Time-Weighted Average Price)
✦ Key Insight
Why It Matters: In fast-moving crypto markets, slippage can turn profitable trades into losses — especially with large orders or during news events. How It Works: Market orders “walk the book,” filling at progressively worse prices if depth is thin. CEX often show estimated slippage before confir
✕ Common Misconceptions
It is often mistaken for similar sounding terms, but the technical implementation is distinct.
Detailed Explanation
Why It Matters:
In fast-moving crypto markets, slippage can turn profitable trades into losses — especially with large orders or during news events.
How It Works:
Market orders “walk the book,” filling at progressively worse prices if depth is thin. CEX often show estimated slippage before confirmation.
Common Mistakes:
No slippage tolerance on volatile pairs; oversized market orders without checking depth.
FAQs
How to minimize? Use limit orders, smaller sizes, or during high-liquidity hours (e.g., London/NY overlap).
Is positive slippage possible? Yes — you can get a better price than expected.
In Practice
“Intending to buy SOL at $150 but a large market order fills at average $153 due to thin asks (3% slippage).”
Dig Deeper
Ad
Get a $100K funded account
See current qualification terms and payout conditions.
Sponsored