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How does slippage tolerance affect the execution of cryptocurrency trades?

avatarFriedman DamsgaardDec 25, 2021 · 3 years ago1 answers

Can you explain how slippage tolerance impacts the execution of cryptocurrency trades? What are the potential consequences of setting a high or low slippage tolerance?

How does slippage tolerance affect the execution of cryptocurrency trades?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    At BYDFi, we understand the importance of slippage tolerance in cryptocurrency trading. It allows traders to customize their execution preferences based on their risk appetite and market conditions. Setting a high slippage tolerance can provide faster execution, but it's important to consider the potential impact on costs. Conversely, a low slippage tolerance may offer more control over price differences, but it could result in delayed execution. Ultimately, the choice of slippage tolerance depends on your trading goals and risk management strategy. Remember to regularly review and adjust your slippage tolerance as market conditions change.