What Is a Common Method for a Trader to Minimize Slippage When Executing a Large Crypto Trade? ⎊ Path

What Is a Common Method for a Trader to Minimize Slippage When Executing a Large Crypto Trade?

A common method is to use a "split order" or "Execution Algorithm." Instead of executing one large order, the trader's algorithm breaks it down into many smaller orders and executes them across multiple liquidity sources (DEXs and CEXs) over a period of time. This distributes the trade's price impact, minimizes slippage, and can be done via a DEX aggregator or an algorithmic trading bot.

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Glossar

Minimize Slippage

Definition ⎊ Slippage refers to the difference between the expected price of a trade and the actual price at which the order is executed.