Slippage trading refers to the gap between the price you expect and the price you actually get when an order executes.

Slippage trading refers to the gap between the price you expect and the price you actually get when an order executes. It happens most often during fast markets, thin liquidity, wide spreads, or when your order is large relative to available depth. Slippage can be negative (worse price) or positive (price improvement), but unmanaged slippage quietly erodes performance over time. To control it, align order type with conditions: use limit orders to cap your worst-case price, define slippage tolerance on DEX swaps, and avoid market orders when the order book is shallow. Split big tickets into smaller slices, target high-liquidity sessions, and check depth-of-book and spread before you click. Advanced tools—VWAP/TWAP algos, smart order routing, and stop-limit instead of stop-market—help keep fills predictable. Track your realized slippage by venue, time of day, and instrument to refine your playbook. With a deliberate slippage trading plan, you can reduce costs, boost fill quality, and turn execution into a repeatable edge.

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