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How Does ‘Slippage’ Affect the Execution of a Decentralized Options Trade?

Slippage is the price difference between expectation and execution, reducing profit due to volatility or low liquidity.
Greeks.Live09.11.25

How Does ‘Slippage’ Affect the Execution of a Decentralized Options Trade?

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. In decentralized options trading, high market volatility or low liquidity can cause significant slippage.

This means the option buyer or seller may receive a less favorable price than anticipated, increasing trading costs and reducing profit margins.

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