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How Does a Centralized Exchange (CEX) Minimize Slippage Compared to a DEX?

CEXs use deep order books and professional MMs; DEXs rely on potentially shallow liquidity pools.
Greeks.Live20.11.25

How Does a Centralized Exchange (CEX) Minimize Slippage Compared to a DEX?

CEXs use traditional order books with deep liquidity provided by professional market makers who are incentivized by lower fees and high volume. This depth means large orders can be filled with minimal price impact.

DEXs, especially AMMs, rely on liquidity pools that can be shallow, leading to higher slippage for large orders.

Why Do Centralized Exchanges (CEX) Often Have Tighter Spreads for Altcoins than Decentralized Exchanges (DEX)?
How Do Centralized Exchanges (CEX) Differ from DEXs?
How Does a Decentralized Exchange (DEX) Handle Slippage Compared to a Centralized Exchange (CEX)?
How Do Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) Typically Compare on Spread Size?

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