Skip to main content
Learn

What Is a Maximum Acceptable Slippage Tolerance and Why Is It Set?

A set limit on the worst acceptable execution price to prevent excessive losses from unexpected price movements or low liquidity.
Greeks.Live09.11.25

What Is a Maximum Acceptable Slippage Tolerance and Why Is It Set?

Maximum acceptable slippage tolerance is a percentage or absolute price difference set by a trader, specifying the worst price they are willing to accept for an order's execution. It is set to protect the trader from excessive losses due to unexpected price volatility or low liquidity.

If the execution price falls outside this tolerance, the order is either partially filled or cancelled, preventing significant, unintended transaction costs.

Should the Limit Price Be Set above or below the Stop Price for a Sell Order?
Define the ‘Limit Price’ Component of a Stop-Limit Order
What Is ‘Maximum Tolerable Slippage’ and Why Is It Set by Traders?
How Does Gas Limit Prevent Infinite Loops during a State Change?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.