Slippage
Slippage is a common problem in the world of cryptocurrency trading. Slippage occurs when the price of a cryptocurrency has shifted between the time an order is placed and the time it is executed. This can cause a trader to purchase or sell a cryptocurrency at a different price than they intended, resulting in losses or gains that were not anticipated.
How to Handle Slippage on Bybit?
Bybit is a cryptocurrency exchange that offers a range of trading features, including market orders. Market orders are orders that are filled immediately at the best available price, meaning the trader does not have to wait for a certain price to be offered before executing the trade. However, because market orders are filled instantly, slippage can occur if the price has shifted between the time the order was placed and the time it was filled.
Fortunately, Bybit offers several ways to minimize slippage and protect traders from unexpected losses. For starters, traders should use limit orders instead of market orders whenever possible. Limit orders allow traders to specify the exact price at which they want to buy or sell a cryptocurrency, meaning they will not be subject to any slippage.
Another way to minimize slippage on Bybit is to use the “Iceberg Order” feature. This feature allows traders to place larger orders in smaller increments, which helps to prevent slippage as the order is filled in stages.
Finally, Bybit also offers a “Post-Only” feature which prevents slippage by ensuring that orders are not filled until the price is exactly as specified. This feature is particularly useful for traders who are placing large orders.
Conclusion
Slippage can be a major source of losses for cryptocurrency traders, but it can be minimized by using the features offered by Bybit. Traders should use limit orders whenever possible, and can also take advantage of Bybit’s Iceberg Order and Post-Only features to further reduce their exposure to slippage.
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