Slippage is a term used in crypto trading to describe the difference between the expected price of a trade and the price at which the trade is actually executed. It usually occurs when there is a sudden and large movement in the market that causes a significant difference between the quoted price and the price at which the order is filled.

Slippage can happen in both directions, which means that the actual execution price of the trade can be either higher or lower than the expected price. In some cases, slippage can be beneficial for the trader, as it can result in a better execution price than expected. However, in other cases, slippage can be detrimental, as it can result in a worse execution price than expected, leading to losses.

To reduce the risk of slippage, traders can use various strategies, such as setting limit orders or using stop-loss orders to minimize their exposure to sudden market movements. They can also consider trading during periods of lower volatility, when the risk of slippage is generally lower.

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