Slippage & Liquidity: What Most Traders Ignore 👇 (Thread)
1/
You planned the perfect entry.
Clicked buy.
But your execution price is… different.
That’s slippage.
2/
Slippage = the difference between
the price you expect
and the price you actually get.
It happens when the market moves
before your order is fully filled.
3/
Why does it happen?
Because of liquidity.
Liquidity = how easily an asset can be bought or sold
without significantly affecting its price.
4/
High liquidity:
– Tight spreads
– Faster execution
– Minimal slippage
Low liquidity:
– Wide spreads
– Delays
– Bigger slippage
5/
Exam