Can you explain the concept of bid-ask slippage and its impact on digital asset prices?

1 answers

• Jan 12, 2022 · 3 years ago
  Bid-ask slippage, also known as spread, is the difference between the highest price a buyer is willing to pay for a digital asset and the lowest price a seller is willing to accept. This slippage can occur due to various factors such as market volatility, order size, and liquidity. When bid-ask slippage is high, it can indicate a lack of market depth and can lead to higher transaction costs for traders. However, it is important to note that bid-ask slippage is a natural part of the market and can provide opportunities for traders to profit from price discrepancies. At BYDFi, we understand the importance of bid-ask slippage and strive to provide a transparent and efficient trading environment for our users.
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