Price Slippage

Price slippage occurs when the execution price of a trade differs from the expected price due to market volatility or low liquidity. In cryptocurrency markets, slippage happens when a large order is placed, and there aren't enough buy or sell orders at the desired price level to fulfill it. As a result, the trade gets executed at different price points, leading to potential losses or gains for the trader. High slippage is common in illiquid markets or during periods of extreme volatility. Example: A trader expects to buy 1 Bitcoin at $40,000 but ends up purchasing part of it at $40,100 due to low liquidity, resulting in price slippage.