Can you explain the concept of slippage and how it can affect a limit buy order in the cryptocurrency market?

3 answers

• Munksgaard McKinneySep 07, 2024 · a year ago
  Slippage refers to the difference between the expected price of a trade and the actual executed price. In the cryptocurrency market, slippage can occur when there is low liquidity or high volatility. When placing a limit buy order, slippage can affect the execution price, resulting in the order being filled at a higher price than anticipated. This can lead to increased costs for the buyer and may impact their overall trading strategy.
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• ii_LeoJun 30, 2024 · a year ago
  Slippage is like that moment when you're trying to catch a falling knife, but it slips through your fingers and you end up with a cut. In the cryptocurrency market, slippage happens when the price of a coin changes between the time you place a limit buy order and the time it gets executed. If the price goes up during that time, you might end up paying more than you expected. It's like the market playing a little trick on you, so be careful and keep an eye on the slippage!
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• Qvist CowanOct 23, 2020 · 5 years ago
  Slippage is a common occurrence in the cryptocurrency market and can have a significant impact on limit buy orders. When you place a limit buy order, you specify the maximum price you are willing to pay for a particular cryptocurrency. However, if the market price of the cryptocurrency increases rapidly, your order may not be filled at your desired price. Instead, it may be filled at a higher price due to slippage. This can result in increased costs for the buyer and may require them to adjust their trading strategy accordingly. At BYDFi, we strive to minimize slippage for our users by providing advanced trading tools and liquidity solutions.
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