Slippage
The difference between expected trade price and actual execution price.
Slippage occurs when the market moves between order submission and execution, or when insufficient liquidity exists at the quoted price. Market orders experience slippage more than limit orders.
"Buying a large amount through a market order walks up the ask side, paying progressively higher prices and increasing slippage."
Related Terms
Market Order
→A type of order to buy or sell a security at the best available price in the current market.
Liquidity
→The ease with which a crypto asset can be bought or sold without affecting the market price.
Order Book
→A real-time list of buy and sell orders organized by price level on an exchange.
Spread
→The difference between the best bid and best ask in an order book.
All terms and definitions may update as the Cryptionary improves.
