trading
Slippage
The difference between the expected and actual execution price of a trade. Caused by price movement and limited liquidity between order and execution.
Slippage
Slippage is the difference between the price you expect and the price your trade actually executes at. It arises because the market moves between order and execution, and because liquidity is limited.
Why slippage happens
- Low liquidity: in small pools, even a medium trade moves the price noticeably.
- Market movement: the price can change between signing and confirmation.
- Trade size: the larger the trade relative to the pool, the higher the slippage.
Slippage tolerance
Most Solana DEXes let you set a slippage tolerance — the maximum deviation you accept. If it is exceeded, the trade fails instead of executing at a significantly worse price.
Related Terms
DEX (Decentralized Exchange) Liquidity Pool DeFi (Decentralized Finance)