Does anyone know where slippage on bStocks comes from?
I figured it out and I’m ready to share my own research.
At first glance, you see the number $660.00 on the screen, you press “Buy” and expect to get bStock$ at that exact price.
But when the order is executed, the price may turn out to be different.
Why?
Let’s imagine that in the order book right now there are bStocks $MSFTB .
10 MSFTB — $660.00
15 MSFTB — $660.20
15 MSFTB — $660.50
I want to buy 40 MSFTB.
The first 10 I’ll get for $660.00, the next 15 for $660.20, and the last 15 already for $660.50.
As a result, the average price of my purchase will be higher than those $660.00 I saw at the beginning.
That is slippage.
So, slippage doesn’t happen because the system executes the order incorrectly.
The reason is simply that there may not be enough volume at the price you need.
I made an important conclusion for myself:
when you work with bStocks, it’s not enough to look only at the chart.
You should also look at what’s happening in the order book and how many orders are actually sitting near the current price.
Because the price on the screen is only an indicator.
And the actual execution depends on which orders are available at the moment when your order reaches the market.
#bStocksCIS @BinanceCIS
I figured it out and I’m ready to share my own research.
At first glance, you see the number $660.00 on the screen, you press “Buy” and expect to get bStock$ at that exact price.
But when the order is executed, the price may turn out to be different.
Why?
Let’s imagine that in the order book right now there are bStocks $MSFTB .
10 MSFTB — $660.00
15 MSFTB — $660.20
15 MSFTB — $660.50
I want to buy 40 MSFTB.
The first 10 I’ll get for $660.00, the next 15 for $660.20, and the last 15 already for $660.50.
As a result, the average price of my purchase will be higher than those $660.00 I saw at the beginning.
That is slippage.
So, slippage doesn’t happen because the system executes the order incorrectly.
The reason is simply that there may not be enough volume at the price you need.
I made an important conclusion for myself:
when you work with bStocks, it’s not enough to look only at the chart.
You should also look at what’s happening in the order book and how many orders are actually sitting near the current price.
Because the price on the screen is only an indicator.
And the actual execution depends on which orders are available at the moment when your order reaches the market.
#bStocksCIS @BinanceCIS