noun
Internet Slang
slippage
SLIP-ij · noun · informal
The gap between a trade's expected and executed price.
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Definitions
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The difference between the price you expect on a trade and the price you actually get, caused by volatility or thin liquidity. DEX users set a slippage tolerance to control it.
“Liquidity was so thin the swap hit 12% slippage.”
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slippage In A Sentence
Liquidity was so thin the swap hit 12% slippage.
Origin & Usage
Traditional trading term, essential in AMM-based DEX trading.
People Also Ask
What is slippage in crypto trading?
Slippage is the difference between the price you expect on a trade and the price you actually get, caused by volatility or thin liquidity.
What is slippage tolerance?
It's the maximum price difference you'll accept on a DEX swap; if the trade would move beyond that percentage, it fails instead of executing.
How do you reduce slippage?
Trade in pools with deeper liquidity, use smaller order sizes, or split a large trade into pieces to limit price impact.
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