What is Slippage?
Slippage is the difference between the expected price of a trade and the price at which the trade is actually executed. It can occur when the market moves quickly and there is a lack of liquidity in the market. It is important to understand how slippage works and how to handle it while placing market orders on
Coinbase Pro.
How Does Slippage Occur on Coinbase Pro?
Slippage can occur on Coinbase Pro when the market moves quickly and there is a lack of liquidity in the market. When the market moves quickly, the price may move beyond the expected price of the trade, resulting in slippage. This can happen when there are not enough buyers or sellers in the market to fill the order.
How to Handle Slippage on Coinbase Pro?
The best way to handle slippage on Coinbase Pro is to use limit orders. Limit orders allow you to specify the maximum price you are willing to pay for a trade. This ensures that your order is filled at the price you specify, or better.
Another way to handle slippage is to use stop-loss orders. Stop-loss orders allow you to specify a price at which your order will be filled if the market moves beyond a certain point. This allows you to limit your losses if the market moves against you.
Conclusion
Slippage can occur on Coinbase Pro when the market moves quickly and there is a lack of liquidity in the market. The best way to handle slippage is to use limit orders and stop-loss orders. By using these types of orders, you can ensure that your order is filled at the price you specify, or better. Additionally, you can limit your losses if the market moves against you.
Keywords: Slippage, Coinbase Pro, Limit Orders, Stop-Loss Orders.
