Slippage Mechanism & Liquidation Process

Slippage

Lpotic Trade implements a dynamic and user-adjustable slippage mechanism to ensure fair and accurate order execution. Slippage represents the difference between the initial entry point of an order and the average price after it has been fully executed.

• Default Slippage: The platform sets a default slippage of 1%, which traders can customize according to their risk tolerance and strategy.

• Order Execution Impact: Slippage settings significantly impact the final execution price of orders, especially in volatile market conditions.

• Strategies to Mitigate Slippage: To minimize slippage, traders can utilize limit orders or execute their orders in smaller increments. However, these methods might lead to slower execution times.