Why Does Slippage Still Happen Even When Spreads Look Tight on Spot Exchanges?

Table of Contents Introduction What is Slippage in Spot Trading? Why Tight Spreads Don’t Guarantee Zero Slippage Common Causes of Slippage on Spot Trading Crypto Exchanges How Traders Can Minimize Slippage The Role of Liquidity in Spot Trading Conclusion Introduction If you’ve ever executed a trade on a Spot Trading Crypto Exchange and ended up paying slightly more or receiving slightly less than you expected, you’ve encountered slippage . It can be frustrating, especially when spreads on the order book look tight and favorable. So why does this happen? Shouldn’t a narrow spread mean your trade gets filled exactly at the price you see? The reality is more complex. In this post, we’ll explore why slippage still occurs in spot trading, what factors drive it, and how traders can minimize its impact. What is Slippage in Spot Trading? Slippage is basically when the price you get on your trade isn’t the same as the price you expected when you placed it. For example: You see Bitco...