Slippage
The difference between the expected trade price and the actual execution price after liquidity and timing effects.
Slippage is the gap between the price a trader expects and the price actually received. It occurs when the market moves before execution or when the order is large relative to available liquidity.
On automated market makers, slippage grows as a trade consumes more of the pool’s reserves. Traders often set a slippage tolerance, but a wide tolerance can expose them to worse execution or front-running.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Market Order
→A market order buys or sells immediately at the best available prices, prioritizing execution over price certainty.
Liquidity
→How easily an asset can be bought or sold in size without causing a large price move.
Order Book
→A real-time list of buy and sell orders organized by price level on an exchange.
Spread
→The gap between the best bid and best ask in an order book, representing an immediate trading cost.
All terms and definitions may update as the Cryptionary improves.
