slippage is the difference between the price expected when an order is built and the price received when it fills. fast markets, thin liquidity, and larger order size can all increase it.
the three parts to remember.
liquidity matters.
a larger order consumes more of the available price levels.
tolerance is a guard.
the trade can cancel when the price moves beyond the maximum difference you accept.
speed is not free.
price can still move between your quote and the completed trade.
why it matters.
understanding the term helps you recognize what can change the outcome of a trade and which questions to ask before acting.
simple language does not remove market risk, but it makes the decision easier to understand.
educational information only. trading crypto and using leverage can result in loss.
