Slippage
The difference between the expected price of a trade and the actual execution price, often caused by low liquidity or high volatility.
Why It Matters
Slippage matters because it affects the price you pay or receive in a cryptocurrency trade. High slippage can lead to unexpected losses, especially in volatile markets, making it vital for traders to be aware of their potential outcomes.
Example
For example, if you set an order to buy Ethereum at $2,500 but the market price suddenly jumps to $2,550 before your order completes, you’ll experience slippage and end up paying more than expected.
Beginner Context
Beginners should see slippage as a factor to consider when trading cryptocurrencies. It’s useful to understand how market dynamics can impact trade execution and pricing.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
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