Slippage

Slippage is the difference between the expected price of a trade and the actual price at which it is executed. It occurs due to market volatility or low liquidity, resulting in price changes between order placement and execution. In crypto and fiat exchanges, slippage can affect both buying and selling activities, impacting the final trade outcome. Traders should be aware of slippage when executing large orders or trading in volatile markets. Strategies like limit orders can help mitigate its effects by setting price limits on trades.