What is Price Slippage?
Price slippage is a common occurrence in trading, especially in fast-moving or low-liquidity markets. It happens when the final price at which your order is executed is different from the price you were expecting at the time the order was placed.
Why Does Slippage Happen?
Slippage typically occurs due to:
Low trading volume – fewer participants in the market.
Volatile conditions – sudden price movements caused by news, market sentiment, or algorithmic trades.
Thin order books – not enough buy/sell orders at each price level.
When you place a trade under these conditions, there may not be enough liquidity at your desired price, causing the order to fill at the next best available price.
Trade size limits are adjusted based on each asset’s market liquidity to help reduce slippage in thin markets.
How Instant Orders Work at Digital Surge
Instant orders allow you to buy or sell crypto immediately at the best available market price. They are the most straightforward order type and are ideal for users who want fast execution without setting a specific price.
Here’s how it works:
When you place an instant order, Digital Surge checks multiple liquidity providers to find the best available price.
The trade is executed using smart order routing, which ensures you get the best current market price available at that moment.
The actual execution price may vary slightly from what is displayed before confirming, due to real-time price movements.
Instant orders are subject to the same slippage risks as other market orders, especially in volatile or illiquid markets. This means that the final price you receive may differ from the price you previewed at the time of order placement.
How Trigger Orders Work at Digital Surge
Trigger orders let you set a specific price at which you want to buy or sell an asset in the future. When the market reaches your trigger price, a market order is automatically placed.
This means:
Once triggered, your order will be executed at the best available price, not necessarily at the exact trigger price.
The execution price can vary due to volatility, available volume, and liquidity at the time of execution.
Trigger orders are different from limit orders. Limit orders guarantee a minimum (for sell) or maximum (for buy) price, but may not fill at all. Trigger orders prioritise execution, not price precision.
Can I Avoid Slippage Completely?
No. Slippage is an inherent part of trading and cannot be eliminated, especially in markets with low liquidity or during high volatility. While Digital Surge implements measures like trade size limits to help reduce the impact, all traders remain subject to the natural risks of the market.
We recommend:
Reviewing how each order type works before placing trades.
Being cautious when trading assets with low volume or high volatility.
Using smaller order sizes where possible to limit exposure to slippage.
If you have any questions or feedback, please reach out to us at contact@digitalsurge.com.au or use our live chat. We're here to help.