In this article, you will understand what slippage is and how the notification sent by Bitso works to avoid losses in tradings! We want you to trade and feel comfortable using Bitso Alpha.
What is slippage?
Slippage occurs when there is not enough liquidity to meet your offer. That way, your order can be partially or fully fulfilled at a higher or lower price than initially planned. We don’t like that option, and you certainly don’t either.
How does the notification to reduce slippage work at Bitso?
Therefore, we put protection in place by adding notifications whenever you try to place an order that may have more than a 5% variation from the last price to avoid losses in the trading process. In addition, this protection is also helpful in case typing errors are made when entering prices or values.
It is important to note that the notice will not prevent you from placing the order, so if the order is executed and there is slippage, the user will be responsible for this.
Market offers are generally subject to slippage. If you don’t want to experience price changes, we invite you to learn more about limit orders.
IMPORTANT: We reiterate that there are a lot of risks in the trading market. We recommend reading our legal disclaimer of liability and risk here.