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What Is Slippage?

Slippage is the difference between the price you expect when you submit a trade and the price you actually get when it executes. On deep markets it rounds to nothing. On thin DEX pools it can quietly take a double-digit bite out of a single swap.

How It Actually Works

On a DEX, your trade moves the pool's ratio, so big trades against small pools push the price against you as they execute. Other people's trades landing before yours move it too. Wallets let you set a slippage tolerance: the worst fill you will accept. Trade reverts if it would be worse.

Risks and Common Mistakes

• Cranking tolerance to force a trade through. Popular tokens at launch "need" 20 percent tolerance precisely because you are overpaying by up to 20 percent. The setting is telling you something.
• Sandwich bots. High-tolerance trades on public networks get front-run and back-run, with the bot pocketing your slack.
• Ignoring it on exits. People check slippage when buying and forget it when panic selling into a thin pool, which is when it hurts most.

When It Matters

Every DEX trade, and overwhelmingly on new and thin tokens, which is why it is a core line item in the memecoin research routine. Keep tolerance tight, size trades small relative to pool depth, and accept that some trades are not worth forcing.

Related Terms

• Liquidity
• DEX

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