Slippage
Slippage generally refers to the deviation between the actual execution price and the preset execution price. This deviation typically moves in a direction unfavorable to the trader, resulting in additional losses. It mainly occurs during market entry and stop-loss operations, not when exiting after a profit. When prices rise rapidly, investors want to enter the market promptly to follow the uptrend, leading to many orders crowding the long side, while counterparties are reluctant to sell or easily go short. Therefore, during rapid price uptrends, long entry prices often experience significant slippage because the entry price from one second ago is rising rapidly. At such times, short positions or selling long positions can be executed quickly, with execution prices at the preset points.
Traders can accept slippage during entry, but slippage on stop-loss causes relatively greater losses and psychological burden. Stop-loss slippage means the actual stop-loss price is not triggered at the set stop-loss point but instead deviates, causing the actual stop-loss magnitude to exceed the originally set amount, thereby increasing losses.
Disclaimer
This article may contain product-related content that is not applicable to your region. This article is intended to provide general information only and does not accept responsibility for any factual errors or omissions herein. This article represents only the author's personal views and does not represent the views of OKX. This article is not intended to provide any of the following advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holding digital assets (including stablecoins) involves high risk, may fluctuate significantly, and may even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For questions regarding your specific situation, please consult your legal/tax/investment professional. The information appearing in this article (including market data and statistics, if any) is for general reference only. Although we have taken all reasonable precautions in preparing these data and charts, we accept no responsibility for any factual errors or omissions expressed herein. © 2025 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less from this article may be used, provided that such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state: "© 2025 OKX, used with permission." Permitted excerpts must cite the article title and include attribution, such as "Article Name, [Author Name (if applicable)], © 2025 OKX". Some content may be generated or assisted by artificial intelligence (AI) tools. Derivative works or other uses of this article are not permitted.
Show More
Recommended Reading
Limit Orders/Market Orders
Limit orders are also known as maker orders, referring to the operation of providing liquidity to the market in order book trading. Market orders are also known as taker orders, referring to the operation of taking liquidity from the market in order book trading. Since limit orders and market orders have opposite effects on market liquidity, most trading platforms set different fee levels for limit and market orders. Generally, the fee rate for limit orders is lower than that for market orders. Click View
December 30, 2024
Trading Currency/Quote Currency
In spot trading, trading is typically conducted between one digital asset and another digital asset. Taking the ETH/BTC pair as an example, ETH is the "trading currency" while BTC is the "quote currency." OKX currently has three trading areas: USDⓈ trading area, USDT trading area, and CRYPTO trading area.
December 30, 2024
Margin Ratio
What is the margin ratio? The margin ratio is an important indicator for measuring account risk status, widely used in margin, options, perpetual contract, and other trading. It is used to determine whether an account can support current positions and help traders reduce liquidation risk. If the margin ratio falls below the threshold set by the platform, it may trigger the liquidation mechanism to protect traders and platform assets. The margin ratio calculation formula: margin ratio = (cross wallet balance of the currency + cross returns
December 30, 2024
Funding Fee
To ensure that perpetual contract prices reflect market changes in the underlying asset, exchanges have established a funding fee mechanism. This mechanism promotes periodic cash flow exchanges between long and short position holders, causing perpetual contract prices to converge toward the index price. When the funding rate is positive, long position holders pay funding fees to short position holders; conversely, when the funding rate is negative, short position holders pay funding fees to long position holders. Note, the platform only facilitates long and short
August 5, 2024
Introduction to Bitcoin ETF
What is a Bitcoin ETF? A Bitcoin ETF, or Bitcoin exchange-traded fund, allows traders to gain Bitcoin risk exposure through traditional stock markets without directly holding Bitcoin. Depending on the specific trading product, it can be divided into Bitcoin spot ETF and Bitcoin futures ETF. What are the advantages of Bitcoin ETF? Compared to mainstream digital asset trust funds currently represented by GBTC in the market, Bitcoin ETF mainly has the following
May 22, 2024
Options Contracts
Simple Trading/Professional Trading Options represent a right that can be exercised at a future time. After purchasing an option, if exercising the right at expiration is favorable to the buyer, the buyer will receive corresponding income through exercise, and the seller must cooperate with the buyer's exercise by making corresponding payments. If exercising the right at expiration is unfavorable to the buyer, the buyer may choose not to exercise, and the seller also does not need to cooperate with the exercise by making corresponding payments. OKX offers Bitcoin (BTC) and Ethereum (ETH) underlying assets
April 25, 2024
