What are the main factors that contribute to slippage in cryptocurrency trading?

1 answers

• Dec 27, 2021 · 3 years ago
  Slippage in cryptocurrency trading is a common phenomenon that can occur due to various factors. Market volatility is one of the main contributors to slippage. Cryptocurrency markets are known for their high volatility, which can result in rapid price changes. When prices change quickly, it can be challenging to execute trades at the desired price, leading to slippage. Another factor is liquidity. If there is low liquidity in a market, it can be difficult to find buyers or sellers at the desired price, resulting in slippage. Order size is also an important factor. Large orders can have a significant impact on the market, causing prices to move before the order is fully executed. Finally, technical issues, such as delays in order processing or network congestion, can contribute to slippage. Traders should be aware of these factors and take appropriate measures to minimize the impact of slippage.
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