What Is ‘Slippage’ in Cryptocurrency Trading and How Do Dark Pools Help Mitigate It?

Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. It commonly occurs in volatile markets or when large orders are placed on exchanges with low liquidity.

Dark pools mitigate slippage by allowing large orders to be matched away from the public order book. This prevents the large order itself from influencing the market price before or during execution, ensuring the trader gets a better average execution price.