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What Is Slippage in Trading?
Slippage is the gap between the price you expect and the price you get. Learn why it happens and how to limit it.
What slippage is
If you place a market order expecting a price of 100 and it fills at 100.40, the 0.40 difference is slippage.
Why it happens
Prices move between the moment you click and the moment you are filled, and a large order may use up the best offers in the order book and fill at worse prices.
How to reduce it
Use limit orders so you never pay more than you choose, trade liquid markets, split large orders, and avoid trading right during major news.
Slippage on decentralized exchanges
On DeFi exchanges you often set a maximum slippage percentage. Setting it too high can let others trade ahead of you at your expense, while setting it too low can make the trade fail.
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Educational content only, not financial advice. Crypto assets carry a high risk of loss.
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Look up unfamiliar words in the crypto glossary or browse coin markets.