Slippage Limit
Last updated
Last updated
Slippage is the difference between the expected price of a token and the final execution price due to market volatility. If a tokenβs price moves beyond your slippage setting, the transaction may either execute at a different rate or fail.
You buy with 2 SOL, expecting to receive 200 $MOON (assuming the price is 1 SOL = 100 $MOON).
If you set the slippage limit to 15%, the trade will still execute even if the price rises to 1 SOL = 85 $MOON.
In this case, you would receive 170 $MOON instead of 200.
If the price rises beyond 15%, the transaction will fail to prevent an unfavorable trade.
Higher slippage: Increases the chance of execution but may result in receiving fewer tokens.
Lower slippage: Reduces risk but might cause failed transactions if the market moves too quickly.
β Set a lower slippage (0.5%-1%) for stable or low-volatility assets to avoid getting a bad price. β Use a higher slippage (5%-20%) for newly launched or fast-moving tokens to increase the chance of execution.