Definition
The difference between the expected price of a trade and the actual price when the transaction executes. Occurs because blockchain transactions take time to confirm and prices can move, especially in low-liquidity markets.
Why It Matters
High slippage can mean you receive significantly less than expected from a trade. Understanding slippage settings in DEX interfaces helps you set acceptable tolerances.
Example
You try to buy $10,000 of a small-cap token at $1.00. By the time the transaction confirms, there's not enough liquidity at that price and you pay $1.03 per token — 3% slippage.
Related Terms
DEX
Liquidity Pool
AMM
Gas Fee