Slippage
Slippage is the difference between the expected price of a trade and the actual execution price. It occurs when market conditions change between order placement and execution.
Understanding the Concept
Slippage eats into your returns. On centralized exchanges with deep liquidity, slippage is minimal—maybe a few cents on Bitcoin. On DEXs with thin liquidity pools, slippage can be massive—you might get 5% less than quoted. Large orders move prices against you (market impact). Fast markets during volatility cause slippage. Protect yourself: use limit orders, check pool liquidity before swapping, split large orders, set slippage tolerance in DEX settings. Most DEXs let you set max slippage—transactions fail if slippage exceeds your tolerance.
Real-World Example
You try to swap $100,000 USDC for a small-cap token on Uniswap. The quoted price is $1.00. But the pool only has $50,000 liquidity, so your trade pushes the price up as it fills. You end up paying an average of $1.12—12% slippage.
How Strykr Helps
Strykr tracks Slippage developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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