What are the factors that contribute to slippage cost in cryptocurrency exchanges?

1 answers

• Dec 29, 2021 · 3 years ago
  Slippage cost in cryptocurrency exchanges is influenced by various factors. Market liquidity is one of the key factors that contribute to slippage. When there is low liquidity, it becomes challenging to execute trades at the desired price, leading to slippage. Another factor is the order size. Large orders can cause slippage as they may not be fully filled at the desired price. Additionally, market volatility can also contribute to slippage cost. Rapid price movements can result in trades being executed at different prices than expected. Traders should consider these factors and use limit orders or other strategies to minimize slippage cost.
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