𝗪𝗵𝗮𝘁 𝗶𝗳 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗲 𝘆𝗼𝘂 𝗰𝗹𝗶𝗰𝗸 𝗶𝘀 𝗻𝗼𝘁 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗲 𝘆𝗼𝘂 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗴𝗲𝘁? 𝗘𝗻𝘁𝗲𝗿 𝗕𝗶𝗱-𝗔𝘀𝗸 𝗦𝗽𝗿𝗲𝗮𝗱 𝗮𝗻𝗱 𝗦𝗹𝗶𝗽𝗽𝗮𝗴𝗲 📉⚖️
𝘋𝘳𝘢𝘸𝘪𝘯𝘨 𝘧𝘳𝘰𝘮 𝘧𝘰𝘶𝘯𝘥𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘭𝘦𝘴𝘴𝘰𝘯𝘴 𝘰𝘯 #BinanceAcademy, 𝘩𝘦𝘳𝘦 𝘪𝘴 𝘺𝘰𝘶𝘳 𝘲𝘶𝘪𝘤𝘬 𝘴𝘱𝘳𝘦𝘢𝘥 𝘢𝘯𝘥 𝘴𝘭𝘪𝘱𝘱𝘢𝘨𝘦 𝘣𝘳𝘦𝘢𝘬𝘥𝘰𝘸𝘯:
1️⃣ 𝗧𝗵𝗲 𝗕𝗶𝗱-𝗔𝘀𝗸 𝗦𝗽𝗿𝗲𝗮𝗱:
• The gap between the highest bid and the lowest ask in the order book, liquid assets like Bitcoin usually show tighter spreads, thinner markets tend to be wider.
2️⃣ 𝗪𝗵𝗲𝗿𝗲 𝗦𝗹𝗶𝗽𝗽𝗮𝗴𝗲 𝗖𝗼𝗺𝗲𝘀 𝗙𝗿𝗼𝗺:
• A large market order can eat through the best price and keep filling at the next levels, so a buy aimed at $100 may end up averaging above $100, with volatile or low-liquidity altcoins on DEXs it can sometimes exceed 10%.
3️⃣ 𝗛𝗼𝘄 𝘁𝗼 𝗞𝗲𝗲𝗽 𝗜𝘁 𝗦𝗺𝗮𝗹𝗹:
• Split big orders into smaller parts, check order book depth, use limit orders when price matters more than speed, on DEXs set a sensible slippage tolerance.
⚠️ 𝗥𝗶𝘀𝗸 𝗡𝗼𝘁𝗲:
A tolerance set too high may expose you to front-running bots, one set too low may leave your order unfilled, and network fees can add to your total cost.
Read the order book before you click, small gaps can add up 💛
📖 Learn more on Binance Academy: https://www.binance.com/en/academy/articles/bid-ask-spread-and-slippage-explained
Crypto involves risk, this is not financial advice, always DYOR 💡
#Slippage #OrderBook #CryptoTrading #CryptoEducation
Follow me for more 💛
𝘋𝘳𝘢𝘸𝘪𝘯𝘨 𝘧𝘳𝘰𝘮 𝘧𝘰𝘶𝘯𝘥𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘭𝘦𝘴𝘴𝘰𝘯𝘴 𝘰𝘯 #BinanceAcademy, 𝘩𝘦𝘳𝘦 𝘪𝘴 𝘺𝘰𝘶𝘳 𝘲𝘶𝘪𝘤𝘬 𝘴𝘱𝘳𝘦𝘢𝘥 𝘢𝘯𝘥 𝘴𝘭𝘪𝘱𝘱𝘢𝘨𝘦 𝘣𝘳𝘦𝘢𝘬𝘥𝘰𝘸𝘯:
1️⃣ 𝗧𝗵𝗲 𝗕𝗶𝗱-𝗔𝘀𝗸 𝗦𝗽𝗿𝗲𝗮𝗱:
• The gap between the highest bid and the lowest ask in the order book, liquid assets like Bitcoin usually show tighter spreads, thinner markets tend to be wider.
2️⃣ 𝗪𝗵𝗲𝗿𝗲 𝗦𝗹𝗶𝗽𝗽𝗮𝗴𝗲 𝗖𝗼𝗺𝗲𝘀 𝗙𝗿𝗼𝗺:
• A large market order can eat through the best price and keep filling at the next levels, so a buy aimed at $100 may end up averaging above $100, with volatile or low-liquidity altcoins on DEXs it can sometimes exceed 10%.
3️⃣ 𝗛𝗼𝘄 𝘁𝗼 𝗞𝗲𝗲𝗽 𝗜𝘁 𝗦𝗺𝗮𝗹𝗹:
• Split big orders into smaller parts, check order book depth, use limit orders when price matters more than speed, on DEXs set a sensible slippage tolerance.
⚠️ 𝗥𝗶𝘀𝗸 𝗡𝗼𝘁𝗲:
A tolerance set too high may expose you to front-running bots, one set too low may leave your order unfilled, and network fees can add to your total cost.
Read the order book before you click, small gaps can add up 💛
📖 Learn more on Binance Academy: https://www.binance.com/en/academy/articles/bid-ask-spread-and-slippage-explained
Crypto involves risk, this is not financial advice, always DYOR 💡
#Slippage #OrderBook #CryptoTrading #CryptoEducation
Follow me for more 💛
