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Glossary Term

Slippage

Slippage is the difference between the expected price of a trade and the actual executed price, often occurring in volatile or low-liquidity markets. In Solana DeFi, managing slippage is crucial for minimizing trading losses during swaps or large orders on decentralized exchanges (DEXs).

Beginner
Trading
Crypto Terminology

Slippage: what is it?

Examples

  • 1

    Setting a 1% slippage tolerance on a SOL/USDC swap on Jupiter.

  • 2

    A large whale order pushes the price up, causing higher slippage and less favorable execution for subsequent trades.

  • 3

    Failed transaction due to market moving beyond user’s preset slippage limit.

Common Use Cases

Adjusting slippage tolerance before trading small-cap tokens or NFTs.
Protecting against volatility during periods of high trading volume (airdrops, launches).
Calculating swap effects when providing or withdrawing from liquidity pools.

Pro Tips

💡

Review historical slippage on Solana DEXs to understand typical market impact.

Frequently Asked Questions