Slippage is the difference between the expected price of an order and the price when the order actually executes. The slippage percentage shows how much the price for a specific asset has moved. Due to the volatility of cryptocurrency, the price of an asset can fluctuate often depending on trade volume and activity. For example, a user orders an asset quoted at 10 mZAR per unit. The user places an order for 1 unit at the quote price of 10 mZAR per unit. However, in the time it takes for the order to execute: the price per unit shifts to 11 mZAR. Hence, the user receives 0.9 units of the asset. This is is an unfavourable slippage of 10 percent.
What is slippage? Print
Created by: Gregory Andrews
Modified on: Mon, 25 Apr, 2022 at 1:25 PM
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