@zxvcbfbadfasfsbb

Slippage (e.g., 3% for a token purchase) is closely linked to market volatility speed and order size. Volatility speed refers to how quickly prices change—during sharp rallies or crashes, the order book updates rapidly, and the target price of a market order may no longer exist when executed, leading to higher slippage. Order size matters too: large orders relative to the order book’s depth (e.g., a $100k order for a small token with only $50k in available liquidity at the target price) force the exchange to fill at higher/lower prices, increasing slippage. To reduce losses, investors can take three steps: use limit orders instead of market orders to lock in prices (though execution is not guaranteed); split large orders into smaller chunks to avoid overwhelming the order book; trade during low-volatility periods (e.g., avoid trading right after major news releases).

0 reply

0 recast

0 reaction