Will exchanging crypto coins during peak times reduce slippage?
Asked 6 months ago
Is it a good idea to trade during a region's most active hours if I want to have greater control and reduce slippage? My thinking is that peak times would mean more liquidity providers. Therefore there would be less slippage. Am I correct?
Rodney Pearson
Tuesday, September 20, 2022
Slippage occurs when traders buy or sell assets more or less than the expected price. Slippage is majorly driven by the two factors: a change in the bid/ask spread in between the time a trade is placed and the trade is filled and/or inadequate orderbook depth (low market liquidity) to support big market orders. Limiting your orders to peak hours will likely minimize the slippage risk since this is when there is high liquidity. Moreover, there are high chances that your order will be processed fast and at a price you expected.
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