What Is Slippage in Crypto Trading?

Slippage is the difference between the price you expected and the price you actually got. Place a market order at $60,000 and fill at $60,090, and you just paid $90 of slippage. Here is why it happens and how to keep it small.

Why slippage happens

An order book only has so much size at each price. A market order eats the best prices first, then the next, then the next — so a big order walks up (or down) the book and fills at an average worse than the top. The thinner the book and the bigger or faster your order, the more it slips.

When it is worst

• Thin liquidity — small-cap alts and off-peak hours.
• Fast markets — news, liquidations and volatility spikes, when makers pull their orders.
• Large orders — size relative to the book depth.

Five ways to reduce it

1. Use limit orders — you set the price; you become the maker and often pay a lower fee too.
2. Trade liquid pairs (BTC, ETH) where books are deep.
3. Split large orders into smaller pieces.
4. Set a slippage tolerance where the platform allows it.
5. Avoid news spikes — spreads widen exactly when you are most tempted to chase.

Slippage is a real cost on top of fees and funding — plan entries and exits instead of chasing. Size every trade with the position size calculator.