All termsLiquidation and Exchange Risk SystemsWorth knowing
Liquidation Slippage
Liquidation slippage is the difference between the expected price of a liquidation transaction and the price at which it is actually executed because of available market liquidity and price movement.
Why it matters to you
During fast markets, many leveraged positions can be liquidated at the same time. If market depth is limited, forced orders may execute at progressively worse prices. This can increase losses and contribute to further market instability.
Terms that sit next to this one
See the perpetuals front
The tools, the live market and the course.