💧 Slippage: the small “difference” that creates big losses.
What happens:
1️⃣ You place a market order: “buy at $74,000”
2️⃣ There wasn’t enough liquidity in the order book at that price
3️⃣ Your order filled at $74,080 — that’s $80 of slippage
When it’s worse:
▪️ Illiquid coins (low volume)
▪️ Volatile moments — news candles, liquidation cascades
▪️ Large orders that “walk” the order book
Tools to protect yourself: limit orders (price control, but with a risk of not getting filled), lower leverage, and smaller sizes in thin order books.
What a liquid asset means: there’s always a clear way out. This boring detail is the real edge. 💡
$BTC
#Slippage #CryptoTrading #Liquidity
What happens:
1️⃣ You place a market order: “buy at $74,000”
2️⃣ There wasn’t enough liquidity in the order book at that price
3️⃣ Your order filled at $74,080 — that’s $80 of slippage
When it’s worse:
▪️ Illiquid coins (low volume)
▪️ Volatile moments — news candles, liquidation cascades
▪️ Large orders that “walk” the order book
Tools to protect yourself: limit orders (price control, but with a risk of not getting filled), lower leverage, and smaller sizes in thin order books.
What a liquid asset means: there’s always a clear way out. This boring detail is the real edge. 💡
$BTC
#Slippage #CryptoTrading #Liquidity