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

Slippage Tolerance

The maximum price difference you're willing to accept between when you submit a trade and when it executes.

Definition

The maximum price difference you're willing to accept between when you submit a trade and when it executes. If the price moves more than your tolerance, the transaction reverts. Setting it too low means failed trades. Setting it too high means you might get a much worse price, especially on DEXs.

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Related Terms

Slippage

The difference between expected and actual trade execution price.

DEX (Decentralized Exchange)

A cryptocurrency exchange that operates without a central authority, using smart contracts to facilitate trades.

Price Impact

How much your trade moves the market price of an asset.

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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