Slippage refers to the difference between the expected price, and the actual price at which a trade is executed.
Clients of CEX.IO Prime Liquidity are able to manually set their own acceptable price slippage. To do so, they just need to use the Max slippage feature available in the Order Placement section of the Trade Page.
The Max slippage setting can better protect trading orders from unwanted deviation of execution price, in cases of unstable or sharp market fluctuations.
Important: Market orders that were created on the Web Terminal with the Max Slippage setting applied are executing according to the IOC model. An Immediate or Cancel order (IOC) is an order that attempts to execute all or part of an order immediately and then cancel any unfilled part of the order.
Example: The Client would like to buy 1 BTC by the market price and considers a 1% deviation from the current price to be acceptable.
After submitting and confirming the order on the Prime Liquidity Web Terminal, the price raised above the Max Slippage threshold. During this movement, only part of the order amount (0.8 BTC) was in the 1% range acceptable for the Client and another part of the order amount (0.2 BTC) was beyond the 1% slippage range.
Result: Part of the order amount (0.8 BTC) was executed at the price that is acceptable for the Client in 1% Slippage range. The other part of the order (0.2 BTC) could not be fulfilled due to the price change over the initially set Max Slippage, so Client may buy the missing part of original volume later.
The Max slippage feature is available for Market BUY/SELL order types.
After filling all the order parameters, you will be able to see the Max Allowed Price for the Market BUY orders and Min Allowed Price for the Market SELL orders which indicates the price, taking into account the maximum slippage that you specified.
Let's take ETH/USD Market BUY order as an example.
Users can choose the maximum percentage of slippage acceptable to them. For example, there are next Max slippages on the ETH-USD trading pair:
0.1%
0.5%
1%
2%
5%
By default Max Slippage was set 1%. Open the drop down menu to see more options.
Once you click on Place Buy Order, the confirmation window appears. It contains the following information:
Side (Buy/Sell);
Type (Max Slippage setting is available for Market orders);
Amount;
Max slippage (selected previously in the new order details);
Current best price (the best market price at the moment of opening the confirmation window);
Max allowed price (Current best price + Max slippage).
Total (indicates the approximate amount to be executed as a result of filling the order)
Fee;
Also, there is a countdown in the bottom of the pop-up window showing the time during which you need to confirm the order.
After the time expires, the Confirm button will be replaced by a Refresh button, so you should refresh for the latest data as market conditions are always changing.
Note: if the current market price deviates from the Best price (the market price that you might have seen during order creating) by more than the set Maximum slippage, the order can either be canceled or partially filled. In this case, please place the market order again, it will be based on the new best price. You can also increase the Maximum slippage value for the new order.