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  1. Home
  2. /Glossary
  3. /Slippage
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trading

Slippage

The difference between expected and actual trade execution price.

Definition

The difference between expected and actual trade execution price. High slippage happens in illiquid markets or with large orders. DEXs let you set slippage tolerance to prevent trades that slip too much.

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Learn More About Slippage

GuideDEX Guide: Decentralized Exchanges

Related Terms

Liquidity

How easily an asset can be bought or sold without significantly affecting its price.

AMM (Automated Market Maker)

A type of decentralized exchange that uses math formulas instead of order books to price trades.

Order Book

A list of all buy and sell orders for an asset, organized by price.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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