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Bid-Ask Spread and Slippage Explained

Bid-ask spread is the difference between the lowest price asked for an asset and the highest price bid. Liquid assets like Bitcoin have a smaller spread than assets with less liquidity and trading volume. Slippage occurs when a trade settles for an average price that is different than what was initially requested. It often happens […]

Instructor Gergő Várhegyi
Updated March 23, 2022

About Course

Bid-ask spread is the difference between the lowest price asked for an asset and the highest price bid. Liquid assets like Bitcoin have a smaller spread than assets with less liquidity and trading volume.

Slippage occurs when a trade settles for an average price that is different than what was initially requested. It often happens when executing market orders. If there’s not enough liquidity to complete your order or the market is volatile, the final order price may change. To combat slippage with low-liquidity assets, you can try to split your order into smaller parts.

Course Content

Bid-Ask Spread and Slippage Explained
Bid-ask spread is the difference between the lowest price asked for an asset and the highest price bid. Liquid assets like Bitcoin have a smaller spread than assets with less liquidity and trading volume. Slippage occurs when a trade settles for an average price that is different than what was initially requested. It often happens when executing market orders. If there's not enough liquidity to complete your order or the market is volatile, the final order price may change. To combat slippage with low-liquidity assets, you can try to split your order into smaller parts.

  • Introduction
  • What is bid-ask spread?
  • Market makers and bid-ask spread
  • Depth charts and bid-ask spread
  • Bid-ask spread percentage
  • What is slippage?
  • Positive slippage‍
  • Slippage tolerance‍
  • Minimizing negative slippage
  • Closing thoughts

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