·1 min read
Slippage in Trading — Hidden Costs Explained
Slippage is the gap between the price you expected and the price you actually got. Why it happens, and how limit orders and liquid pairs keep it small.
TradingInvestingStrategyEducation
What slippage is
You intend to buy BTC at 70,000 but the order actually fills at 70,050. That 50 (about 0.07%) is slippage. It happens when there is not enough liquidity at your price, so your order eats into higher levels of the order book.
Market vs limit orders
- Market orders fill immediately but accept slippage — you take whatever price is available, which for large orders can be worse than the quote.
- Limit orders have no slippage — you set the price and only fill at it or better — but they may not fill at all.
How to reduce it
- Prefer limit orders when you can wait for your price.
- Split large orders into smaller pieces so each takes less from the book (useful mainly on thinner markets; unnecessary for very liquid pairs).
- Trade liquid pairs. BTC/USDT might slip 0.01%; a small-cap coin can slip several percent.
A common mistake
Sending a large market order into an illiquid coin can cost several percent instantly — a loss you take before the trade even has a chance to work. On thin markets, use limit orders or DCA in small amounts.
fastbot uses limit orders where possible and supports splitting your entry, helping keep slippage down across Binance, DNSE and eToro. Learn more.