What Is Slippage in Crypto
Slippage is the difference between an expected trading price and the price at which a trade actually executes.
It can happen when prices move before an order completes or when an order uses up the available liquidity near the quoted price.
Suppose a hypothetical purchase is quoted at $100 but executes at $102. That $2 difference is unfavorable slippage for the buyer. Execution can also be more favorable than expected.
Slippage is different from a trading fee. A trade can have both, and both affect the final result.
Some decentralized exchanges let users set a slippage tolerance. This specifies how much execution variation the transaction permits; it does not guarantee a good price.
A very high tolerance may permit a much worse outcome. A very tight tolerance may cause a transaction to fail, and network fees may still apply.
Price impact is a related concept: it describes the price movement caused by the trade itself. Interfaces may display price impact and slippage separately.
For beginners, read the full trade preview: expected amount, minimum amount received, fees, and any price-impact warning. If those details are confusing, practice with an example before making a live trade.
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