Slippage
Slippage is the difference between the expected price of a trade and the actual price at which the trade executes. In volatile meme coin markets, slippage can be substantial due to rapid price movements and low liquidity.
Examples
- 1
You set a buy order for a token at $0.10, but due to 5% slippage tolerance, you might actually pay up to $0.105 per token.
- 2
During a pump, your sell order has 10% slippage - you expected $1.00 per token but only received $0.90 due to market volatility.
- 3
Setting slippage too low (e.g., 0.5%) can cause trades to fail in volatile markets, while setting it too high (e.g., 50%) makes you vulnerable to MEV sandwich attacks.
Related Terms
Why This Matters
Understanding slippage is crucial for safe and effective meme coin trading. Mastering this concept will help you make better trading decisions.
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