Define the Term "Slippage" and Its Impact on Large Crypto Derivatives Orders ⎊ Path

Define the Term “Slippage” and Its Impact on Large Crypto Derivatives Orders.

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. It occurs when market orders are filled at progressively worse prices due to insufficient liquidity at the best bid/ask.

For large crypto derivatives orders, especially in illiquid altcoins, slippage can significantly increase the cost of execution, making a seemingly profitable trade turn into a loss. Market makers price this risk into their quotes.

What Is the Practical Implication of a “Wide Mid-Price” in an Illiquid Options Market?

Define ‘Price Impact’ in the Context of an Illiquid Asset Trade

Define “Slippage” in the Context of a Large Liquidation Order

What Is ‘Slippage’ in DEX Trading and How Does It Affect Large Orders?

Define ‘Slippage’ in the Context of DEX Trading

What Is ‘Slippage’ and How Is It Magnified by the Wider Spreads Found in Illiquid Altcoin Markets?

What Is the Difference between Positive and Negative Slippage?

What Is “Slippage” and How Does It Affect the Final Liquidation Price for a Large Position?

Glossar

Define the Term “Slippage” and Its Impact on Large Crypto Derivatives Orders

Define the Term “Slippage” and Its Impact on Large Crypto Derivatives Orders.

Glossar

Insufficient Liquidity

Market Orders

Volume Weighted Average Price