Can someone help me understand slippage better. If I do

Question

MultiversX - Community

Towel Hall

Can someone help me understand slippage better. If I do

a 50% slip does that mean I have potential to lose 50% value on my trade?

#blockchain #cryptocurrency #elrond #english

0

27.11.2021

6 ответов

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T Rahim

Between the moment you do the swap and the moment the swap is being done (may be 20 sec) the price of the 2 assets can change. Slippage is the amount of change that you are ready to tolerate. If the change of price is lower than your slippage, the swap will be executed. If it is higher, it won't be executed. So for example if you swap EGLD > MEX and your slippage is 5%: if during the swap the price of MEX changes by more than 5% compared to EGLD, the swap will be cancelled

0

27.11.2021

Towel Hall Автор вопроса

Oh so it’s not talking about loss it’s just letting a trade go through when if it’s not the same value as when you clicked the button

0

27.11.2021

Pa⃨w⃨s⃨ -⃨ I WILL NOT DM/CALL

You have some good answers, please join @mextrader for trading strategies and guides Also read this https://www.investopedia.com/terms/s/slippage.asp

0

27.11.2021

T Rahim

Towel Hall
Oh so it’s not talking about loss it’s just lettin...

It could be loss: for example you swap USD for EGLD and the price of EGLD is 400 USD. But during the SWAP, the price of EGLD goes up to 420 USD. Now you can buy less EGLD with the same amount of USD, because EGLD is more expensive. But most of the time, you don't care, you just want to swap. So in this case, if volatility is high, it's good to put a very high slippage or the transaction will fail. For example when mex first came out, everyone was buying at the same time so the price was increasing fast. I just wanted to buy MEX, no matter the price change. So i put 90% slippage, my swap was executed. My friend put 20% and it was rejected. Until he swapped again, he lost a lot of time and mex became much more expensive

0

27.11.2021

Towel Hall Автор вопроса

Pa⃨w⃨s⃨ -⃨ I WILL NOT DM/CALL
You have some good answers, please join @mextrader...

Ok sounds good I get it now. Thanks guys :) always thought that it was an inherit loss that was happening not just setting up yourself to purchase at a different price then the order was set up for.

0

27.11.2021

Gallium [i'll never DM first] · Accepted Answer

Gallium [i'll never DM first]

Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage can occur at any time but is most prevalent during periods of higher volatility when market orders are used

0

27.11.2021

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Can someone help me understand slippage better. If I do

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