Slippage mentions the gap between an expected price of a trade and the current price at which it is executed. This effect occurs in most cases when a significant order is filled, but there is an insufficient volume at the chosen price in a market to maintain the current bid-ask spread.

This can be encountered at any time and in any market, but it is particularly frequent during periods of high volatility when market orders are placed. The other reason slippage occurs in cryptocurrencies is a lack of liquidity.

For example, it is quite possible that a stop loss will not be honored. The execution of the order may be downstream, which will result in a larger loss than what was estimated when the stop loss was set. Indeed, as the cryptocurrency market is far more volatile than other ones, the impact of slippage is far more pronounced. Between the execution request of an order and its real completion on the platform, a few seconds are enough for the price to rise or fall by a couple of percents. When combined with a platform with relatively low liquidity and high latency, the consequences can be catastrophic for unprepared investors.

It is good to know that there is no price slippage, no swap fees, and no gas fees on Kromatika.