Is slippage more common in high volatility cryptocurrencies?
Praveen DesaiMar 21, 2021 · 4 years ago5 answers
What is slippage and is it more common in high volatility cryptocurrencies?
5 answers
- Abdellah RekouneAug 30, 2020 · 5 years agoSlippage refers to the difference between the expected price of a trade and the price at which the trade is actually executed. It commonly occurs in situations where there is high volatility in the market. In the context of cryptocurrencies, slippage can be more common in high volatility cryptocurrencies due to the rapid price movements. When the price of a cryptocurrency is highly volatile, there is a higher chance that the execution price of a trade will deviate from the expected price, resulting in slippage. Traders should be aware of this risk and take it into consideration when trading high volatility cryptocurrencies.
- Linde BanksFeb 15, 2021 · 5 years agoSlippage is a term used in trading to describe the difference between the expected price of a trade and the actual price at which the trade is executed. It can occur in any market, including the cryptocurrency market. High volatility cryptocurrencies are more prone to slippage because their prices can change rapidly within short periods of time. This means that the execution price of a trade may not be exactly what the trader expected, leading to slippage. Traders should be cautious when trading high volatility cryptocurrencies and consider using limit orders to minimize the impact of slippage.
- C CAug 13, 2025 · 4 days agoSlippage is a common occurrence in the cryptocurrency market, especially in high volatility cryptocurrencies. When the price of a cryptocurrency is highly volatile, there is a greater chance that the execution price of a trade will deviate from the expected price, resulting in slippage. Traders should be aware of this risk and take appropriate measures to mitigate it, such as setting stop-loss orders or using advanced trading strategies. At BYDFi, we understand the importance of minimizing slippage for our users, and we continuously work on improving our trading infrastructure to provide the best trading experience.
- Joshua DawsonAug 19, 2024 · a year agoSlippage can be more common in high volatility cryptocurrencies due to the rapid price movements. When the price of a cryptocurrency is highly volatile, there is a higher chance that the execution price of a trade will deviate from the expected price, resulting in slippage. However, it's important to note that slippage can occur in any market, not just in cryptocurrencies. Traders should always be mindful of slippage and take appropriate measures to manage the risk.
- martonziAug 11, 2021 · 4 years agoSlippage is a term used in trading to describe the difference between the expected price of a trade and the actual price at which the trade is executed. It can occur in any market, including the cryptocurrency market. High volatility cryptocurrencies are more prone to slippage because their prices can change rapidly within short periods of time. This means that the execution price of a trade may not be exactly what the trader expected, leading to slippage. However, slippage can also be influenced by other factors such as market liquidity and order size. Traders should consider these factors when trading high volatility cryptocurrencies to minimize the impact of slippage.
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