Major slippage demonstrated here: Flash crash Part 1 | ETH/USD currency pair traded at $0.10 - ua-cam.com/video/2lcVcNt6r6M/v-deo.html Other videos that you may like: #1 Order types and parameters - ua-cam.com/video/vm2kDspBMWw/v-deo.html #2 Order matching engine - ua-cam.com/video/yoYw5MhJfZg/v-deo.html #3 Market orders - ua-cam.com/video/BhTp2WtWD2s/v-deo.html #4 Limit orders as takers - ua-cam.com/video/d9D4KMDP4uI/v-deo.html #5 Limit orders as makers - ua-cam.com/video/ShGkzw2KivI/v-deo.html #6 Sell side stop orders and the delay condition - ua-cam.com/video/rFX7OJDtKbg/v-deo.html #7 Buy side stop orders - ua-cam.com/video/2G7VkxVoqMo/v-deo.html All in this list: ua-cam.com/play/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII.html
The Coinbase Pro web interface will display a warning if you attempt to place an order that would execute more than 2% outside of the last trade price. Many more videos for learning in this series: deeplizard.com/learn/video/fXZzligFmQ8 Reference: support.pro.coinbase.com/customer/en/portal/articles/2945315-slippage-warning
Great vid & thanks for the explanation. I just tried to do my first sell limit order on Gdax. I only used a small amount of BTC (0.01). Put in a sell price for 6220 as I was afraid the market would drop below this and I wanted to get out. The price was around 6330 at the time. (Euros by the way!) I had to untick the "post only" checkbox as the order was cancelled each time. Then I came back a bit later and realised that my order was sold at 6279 which I didnt want. I'm not sure if this would be "slippage" also? It said there was a ~€.2276 fee. Thanks in advance
rinnin, Thank you! Sell side limit orders will execute at the best bidding price above the limit price. In your case, bidding prices likely existed in the gap between your limit 6220 and 6330. As a result, your order would be unable to post to the order book (get put on the book). This is because your order would be matched with a buy order on the book immediately. This is why you had to uncheck post only (with your limit it would be impossible to post to the book). The scenario you outlined is similar to slippage, but it is more likely that the best bid moved down quickly. This is why we use limits, in case the bids move lower than we expect too quickly. For slippage to occur, the amount of your sell order needs to be greater than the total amount at the best bid. If this is the case, part of the order will be matched with the amount at the best bid (this is a partial fill). To fill the rest, the order will have to *slip* down to the next best bid. This continue until all of the quantity or amount is filled.
I have a trading bot and the settings have a slippage at 5.0, what does that mean? If that’s 5% is that a lot? And if you were me what would you change it to?
Major slippage demonstrated here:
Flash crash Part 1 | ETH/USD currency pair traded at $0.10 - ua-cam.com/video/2lcVcNt6r6M/v-deo.html
Other videos that you may like:
#1 Order types and parameters - ua-cam.com/video/vm2kDspBMWw/v-deo.html
#2 Order matching engine - ua-cam.com/video/yoYw5MhJfZg/v-deo.html
#3 Market orders - ua-cam.com/video/BhTp2WtWD2s/v-deo.html
#4 Limit orders as takers - ua-cam.com/video/d9D4KMDP4uI/v-deo.html
#5 Limit orders as makers - ua-cam.com/video/ShGkzw2KivI/v-deo.html
#6 Sell side stop orders and the delay condition - ua-cam.com/video/rFX7OJDtKbg/v-deo.html
#7 Buy side stop orders - ua-cam.com/video/2G7VkxVoqMo/v-deo.html
All in this list: ua-cam.com/play/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII.html
Great info! I can't believe this video doesn't have more likes. (Subscribed)
Great video, explained everything about slippage and more in just 4 minutes, I don’t normally comment on videos but this one was worth it
It really is interesting and entertaining for me to see everything related to this topic, thank you very much for sharing it!
Sweet explanation. Many thanks
Helpful stuff!
Thanks for letting me know!
Slippage
I placed a limit sell order today and coinbase pro showed me a warning that there could be a 2% slippage. What does that mean?
The Coinbase Pro web interface will display a warning if you attempt to place an order that would execute more than 2% outside of the last trade price. Many more videos for learning in this series: deeplizard.com/learn/video/fXZzligFmQ8
Reference: support.pro.coinbase.com/customer/en/portal/articles/2945315-slippage-warning
When your order takes time to be executed other players are frontrunning you, thats cause slippage
Great vid & thanks for the explanation.
I just tried to do my first sell limit order on Gdax. I only used a small amount of BTC (0.01). Put in a sell price for 6220 as I was afraid the market would drop below this and I wanted to get out. The price was around 6330 at the time. (Euros by the way!) I had to untick the "post only" checkbox as the order was cancelled each time. Then I came back a bit later and realised that my order was sold at 6279 which I didnt want. I'm not sure if this would be "slippage" also? It said there was a ~€.2276 fee. Thanks in advance
rinnin,
Thank you!
Sell side limit orders will execute at the best bidding price above the limit price.
In your case, bidding prices likely existed in the gap between your limit 6220 and 6330.
As a result, your order would be unable to post to the order book (get put on the book).
This is because your order would be matched with a buy order on the book immediately.
This is why you had to uncheck post only (with your limit it would be impossible to post to the book).
The scenario you outlined is similar to slippage, but it is more likely that the best bid moved down quickly.
This is why we use limits, in case the bids move lower than we expect too quickly.
For slippage to occur, the amount of your sell order needs to be greater than the total amount at the best bid.
If this is the case, part of the order will be matched with the amount at the best bid (this is a partial fill).
To fill the rest, the order will have to *slip* down to the next best bid.
This continue until all of the quantity or amount is filled.
I have a trading bot and the settings have a slippage at 5.0, what does that mean? If that’s 5% is that a lot? And if you were me what would you change it to?