What is slippage and how should I set slippage tolerance?
Login Required
Please sign in with Google to answer this question.
2 Answers
0
Slippage is the difference between the price you expect and the price you actually get when a trade executes. I learned this the hard way during a volatile crypto swing last spring. I hammered a swap for a new token with optimistic gas settings and watched the quote slide 3% by the time the order went through. I set slippage tolerance to 1% next time, and it still filled cleanly with some protection. For fast, liquid pairs I keep it around 0.5-1%. When liquidity is thin or the market is jumping, I bump it to 3-5% so the trade doesn't fail, but I know it might cost more. Always check liquidity, aim for the smallest tolerance that still guarantees the fill, and consider limit orders if your platform supports them.
0
0
Slippage is the difference between the price you expect and the price you actually get when your trade goes through. I usually set 0.5, 1% for liquid coins, and raise to 2, 3% for volatile or illiquid pools. Always check the price impact in the UI, if it looks likely to eat more than your tolerance, adjust or skip. I learned this after a token spiked and a tighter tolerance saved me.
0