What is Slippage?

When clicking on the Trade Settings button (gear icon), you may have noticed the section on Slippage and how you can adjust this. But what exactly is Slippage? What does it mean?

Slippage

Slippage refers to the difference between the expected price of a trade and the actual executed price of the trade. This slippage is de facto a hidden price impact that users may experience when trading against an Automated Market Maker (AMM).



Slippage tolerance is a parameter that determines the worst acceptable price for a trade. With our trade module, you can adjust your tolerated amount of slippage so that if the resulting price is worse than the set threshold, the trade will not execute. Just note, the default slippage tolerance is set to 0.5% and should only be adjusted if you are willing to experience larger amounts of slippage.



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Additional Resources:

• What are Trade Settings

• 0x blog post on measuring the impact of hidden DEX costs.
  
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