# What Is Slippage

![](/files/5UdOXo1OccxwzS4Y8K1k)

Slippage happens when a trader makes a trade, and the price is higher or lower than expected (for both buying and selling).

Let's get started!

## Slippage can either be positive or negative.

📈 A positive slippage occurs when an order is executed at a more favourable price than the intended execution price.

📉 Conversely, if a trader received a less favourable price than intended, it is considered negative slippage.

## What causes slippage?

Two primary reasons tend to cause slippage: Volatility & Liquidity.

Volatility: After sending out a txn, it takes time for the transaction to make it on-chain. Hence, the final price might differ from the price which was expected.

Liquidity: liquidity refers to the ease with which an asset can be traded to another without affecting its market price. The lower an asset's liquidity is, the higher risk a trade will be affected, and vice versa.

##  **How to reduce the effects of slippage?**

### 1️⃣ Trading only in highly liquid markets:

Highly liquid markets have more stable liquidity on both asset sides which increases the likelihood of an order being executed at the requested price.

### 2️⃣ Avoid trading while the market is volatile: 

Try to not FOMO when the price swings violently to avoid suffering from the negative slippage.

### **4️⃣ Slippage Tolerance:** 

You can set your own slippage tolerance when trading on [Furucombo](https://furucombo.app/). Your txn will revert if the price change unfavourably by more than the percentage you set. However, note that if you set the slippage tolerance too low, your txn might not be able to execute and will fail.

![Slippage tolerance](/files/Qz8wJWx3tJTlkCeclOHt)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.furucombo.app/using-furucombo/defi-learn/what-is-slippage.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.