๐ Binance Crypto Learning Series โ Part 111
Slippage vs. Spread: Whatโs the Difference?
๐ฅ Why is there an extra cost when entering a trade? The reason isnโt always the same!
In crypto trading, Spread and Slippage are two different things that can affect the actual cost of your trade.
๐ก 1. Spread โ The Price Gap
The difference between the Best Ask and the Best Bid.
Example:
Bid: $100,000
Ask: $100,050
Spread: $50
๐ด 2. Slippage โ The Difference in Execution Price
When an order is executed at a different price than expected.
Example:
Expected Buy: $100,000
Actual Buy: $100,100
Slippage: $100
๐ง Golden Rule
Spread = The gap between the Bid and Ask.
Slippage = The difference between the expected and actual execution price.
Understanding both is especially useful in volatile or low-liquidity markets.
Which of these two do you think could have a greater impact on low-liquidity coins? ๐
#BinanceSquare #BTC #BidAskSpread #cryptotrading #tradingeducation $BTC
Slippage vs. Spread: Whatโs the Difference?
๐ฅ Why is there an extra cost when entering a trade? The reason isnโt always the same!
In crypto trading, Spread and Slippage are two different things that can affect the actual cost of your trade.
๐ก 1. Spread โ The Price Gap
The difference between the Best Ask and the Best Bid.
Example:
Bid: $100,000
Ask: $100,050
Spread: $50
๐ด 2. Slippage โ The Difference in Execution Price
When an order is executed at a different price than expected.
Example:
Expected Buy: $100,000
Actual Buy: $100,100
Slippage: $100
๐ง Golden Rule
Spread = The gap between the Bid and Ask.
Slippage = The difference between the expected and actual execution price.
Understanding both is especially useful in volatile or low-liquidity markets.
Which of these two do you think could have a greater impact on low-liquidity coins? ๐
#BinanceSquare #BTC #BidAskSpread #cryptotrading #tradingeducation $BTC