# Slippage

Slippage is the difference between the expected trade price and the actual execution price. It occurs when your order is executed at a price different from what you saw when placing it.

Slippage can be positive (better price) or negative (worse price). Negative slippage is more common.

### How Slippage Occurs

You place a market order to buy 2 BTC at $50,000.

In the order book:

* 0.5 BTC at $50,000
* 1 BTC at $50,050
* 0.5 BTC at $50,100

Your order takes all levels. Average execution price: $50,050

Slippage: $50 per 1 BTC or $100 for the entire order.

### Causes of Slippage

**Low liquidity** — few orders in the order book, order executes at worse prices.

**High volatility** — price changes quickly between placing and executing the order.

**Large volume** — large order "eats through" several price levels in the order book.

**Market orders** — execute at any available price without limits.

**Technical issues** — exchange delays (lags), server overload during high activity, internet connection problems. Your order reaches the exchange with a delay, during which time the price has already changed.

### Important

Slippage is not an exchange fee. It's a natural market phenomenon due to how the order book works.

On decentralized exchanges (DEX), slippage is usually higher due to lower liquidity.


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