What Is the Difference between 'Slippage Tolerance' and a 'Limit Order' in DeFi? ▴ Learn

What Is the Difference between ‘Slippage Tolerance’ and a ‘Limit Order’ in DeFi?

Slippage tolerance is a setting on a market order that defines the maximum acceptable percentage difference between the expected execution price and the actual execution price. A limit order is an instruction to buy or sell at a specified price or better.

Slippage tolerance protects against price swings on a market order; a limit order dictates the exact price.

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