Slippage is the gap between the amount you were quoted and the amount you receive
Slippage is the difference between the quoted amount and what arrives in your wallet, caused by the market moving before the trade executes. On an instant swap service it shows up with a floating rate, which settles at execution. A fixed rate locks the price for a set window instead.
The change in a swap's price that can happen while a submitted transaction is still pending (Uniswap docs). You end up with a different price than the one you requested because the market moved before the trade executed (CoinMarketCap Academy).
Calculate your slippage
Enter the amount you were quoted and the amount that arrived. The result is the difference in percent; the bar shows its size.
Why does slippage happen?
While a transaction waits to be included in a block, other swaps keep executing, so the price environment it finally executes in can change. 1inch names two drivers of size: volatility makes price moves more likely during the wait, and low liquidity makes each trade move the price more.
- The market moves. With a floating rate, the price can change between your deposit and the moment the swap executes.
- Confirmations take time. A swap can't complete until the deposit has the confirmations the service requires, so slow chains leave more room for movement.
- Liquidity differs by pair. Thin liquidity, common among smaller altcoins, can add to slippage (CoinMarketCap Academy).
What is the difference between slippage and price impact?
Price impact
- The part of the price difference your own order causes.
- Larger trades relative to pool depth move the price more.
- More liquidity at a price means lower impact for the same size.
Slippage
- The part the market causes while you wait.
- Grows with volatility and waiting time.
- Can be positive or negative.
On an automated market maker, smaller trades execute closer to the spot price. Both effects end up in the same number: the amount you receive.
What slippage tolerance should I set on a DEX?
On a DEX you set slippage tolerance yourself. It is the same limit as "minimum received": with tolerance at 1%, the minimum you can expect is the expected output minus 1% (ethereum.org).
A higher tolerance is always safer.
A high tolerance publicly signals how bad a fill you will accept, which sandwich bots can exploit (1inch).
The lowest tolerance is always best.
Set it too low and the transaction may never execute, so you can miss the trade during a large price move (CoinMarketCap Academy).
A failed swap costs nothing.
If the price falls outside the accepted range, the swap does not happen, but on Ethereum the gas is still charged (ethereum.org).
In a sandwich attack, the victim ends up with increased slippage.
Instant swap services work differently: you send a deposit and the service fills the order, so there is no tolerance setting to choose.
How SimpleSwap and ChangeNOW handle it
- SimpleSwap routes each order across 20+ CEX and DEX providers and publishes a 99.998% estimate-accuracy figure for most floating swaps.
- ChangeNOW says it finds the best available rate across multiple liquidity sources. It does not publish an estimate-accuracy figure.
- Both offer a fixed rate when you want the price locked.
How can I reduce slippage when swapping crypto?
- Lock the rate when it matters
Pick a fixed rate when the deposit chain is slow or the market is moving fast. Fixed vs floating.
- Mind the size
Trading smaller amounts relative to available liquidity reduces price impact (1inch).
- Use deeper liquidity
Splitting an order across venues or choosing deeper pools also helps, which is what aggregators automate.
- Cap the price
On venues with order books, a limit order sets the worst price you accept (CoinMarketCap Academy).
- Compare at the same minute
Compare the final amount you receive for the same pair, size and minute.
Questions
What is slippage in crypto?
Slippage is the difference between the price or amount you were quoted and what you actually get, caused by the market moving while your transaction is pending.
What is the difference between slippage and price impact?
Price impact is the part of the price difference your own order causes, depending on its size relative to liquidity.
Slippage is the part the market causes while you wait for execution.
What slippage tolerance should I set on a DEX?
There is no single right number. Too low and the transaction may fail; too high and bots can exploit it. Slippage tolerance and "minimum received" express the same limit.
Can slippage be positive?
Yes. If the market moves in your favour before execution on a floating rate, you can receive more than quoted. The calculator above shows a positive result in that case.
Does a fixed rate remove slippage?
A fixed rate is locked for a set window after you create the order, so the market cannot move the amount you receive during that window. On SimpleSwap the window is 20 minutes.