How does SLIPPAGE TOLERANCE affect your trades.

On today's Session on #GetsmarterinCrypto , we are gonna be discussing about SLIPPAGE tolerance and how they could potentially affect your trade.

Okay, Let's Go Formal;

Slippage tolerance is a concept in the cryptocurrency world that refers to the degree of price movement that a trader is willing to accept.

In other words, it's the maximum amount that the price can change from the time the trade is placed to the time it's executed.

This is important because the cryptocurrency market is very volatile, and prices can change rapidly.

A high slippage tolerance means that the trader is willing to accept more risk in exchange for a faster trade execution.

(A brief Casual"__" So, Let's say there is this new coin coming out say #TOKENFI of #Floki and you wanna ape in fast to meet up with the 20,000% as the massive liquidity pour in, the price volatility here is undoubtedly gonna be feisty and a little SLIPPAGE tolerance wouldn't cut it for your price action.

Increasing your Slippage tolerance(significantly) is like signing a contract of say "I agree that there might be a huge Discrepancy in price details since a lot will be hoping on this new coin, but I agree to get in the trade Right away, no matter price cut of volatility might usurp".

Just that....

BRIEF NOTE ON THE EFFECTS

Slippage tolerance affects several things.

First, it affects the likelihood of a trade being executed at the desired price.

A low slippage tolerance means the trade is more likely to be executed at the desired price, but it could take longer to execute.

On the other hand, a high slippage tolerance means the trade is more likely to be executed quickly, but the price could be significantly different from the desired price.

Slippage tolerance also affects the amount of fees paid for a trade, as well as the risk exposure of the trader.

Are you planning to make any trades in the near future?

Have you just gotten smarter on how to Navigate your way on these huge tech obscurities...?

That's what I am here for.

See you next time.