Is Slippage Eating Away at Your Trading Profits? Here's What You Need to Know!

🎯 Is Slippage Eating Away Your Profits? Here's What You Need to Know!

Slippage happens when your trade is executed at a different price than expected, and it can silently erode your trading gains, especially in high-frequency trading. 🚨

💡 Market Impact: Large orders can cause slippage—especially in liquid stocks, where it accounts for 65% of slippage.
⏱️ Timing: Trading in the first and last 30 minutes of the day leads to 2.5x more slippage than mid-day.
💧 Liquidity: There's a strong negative correlation between liquidity and slippage. Less liquid assets = more slippage!

🧠 Want to minimize slippage? Use smart routing algorithms and strategies like TWAP or VWAP for large orders!

What strategies do you use to tackle slippage? Let us know in the comments! 👇

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