Slippage: What It Is and Why It Matters

When dealing with Slippage, the difference between the expected price of a trade and the price you actually receive. Also known as price slippage, it shows up whenever market conditions shift between order placement and execution. Slippage isn’t just a crypto quirk; it happens in any market where orders move fast. It encompasses price impact, order size, and timing, so understanding it helps you avoid surprise losses.

Another key player is Liquidity, the amount of assets available at each price level in an order book or pool. Good liquidity means deep order books, tighter spreads, and less chance of large slippage. When liquidity is thin, even a modest order can push the price, creating a ripple effect. For example, a token with high trading pair volume usually boasts better liquidity, which in turn reduces the risk of unexpected price drops.

Market impact, a third entity, plays a direct role: Market Impact, the price movement caused by the execution of a trade. If you place a big buy order on a low‑volume pair, the market reacts, catching up to your order and raising the average price you pay. Volatility amplifies this effect—rapid price swings give the market less time to absorb orders, boosting slippage. Using a decentralized exchange (DEX) adds another layer; DEXs rely on automated market makers (AMMs) where liquidity pools set prices, so pool depth directly determines slippage levels.

All these pieces—slippage, liquidity, market impact, trading pair volume, and the DEX environment—interact to shape your trade outcome. Below you’ll find a curated set of articles that break down each concept, show real‑world examples, and offer tips to keep slippage under control. Dive in to sharpen your strategy and trade with confidence.