What Are the Risks of High Slippage in Executing a Large Crypto-Derivative Trade?
High slippage in a large derivative trade, such as perpetual futures, means the execution price is significantly worse than the quoted price, leading to higher transaction costs and reduced profit or amplified loss. For a large market order, the slippage can trigger cascading liquidations if the price movement pushes a margin account below its maintenance level.
This uncertainty in execution price adds a layer of risk, particularly in volatile markets or low-liquidity pairs.
