GlossaryIntermediate
Slippage
The difference between the expected price of a trade and the price at which it executes.
Slippage occurs when a trade executes at a different price from the one a user expected. It can result from price movement, limited liquidity, trade size, or the delay between submitting and confirming a transaction.
A slippage setting can limit the acceptable difference in some trading interfaces, but a setting that is too loose may accept a poor price and one that is too tight may cause a transaction to fail.
Examples
- A large swap in a shallow pool can experience more slippage than a small swap in a deep pool.
- A user should review the minimum amount received before approving a trade.