How IronX Can Help Traders to Avoid High Slippage
With a rapid crypto market development, it has become necessary to identify which exchange’s advantages to consider before you start trading. There is no possibility to avoid slippage at all, but it is still possible to prevent high slippage, which may ruin your trading strategy and cause huge loses.
Such significant volatility often causes slippage for traders, meaning that the price at which they enter trade changes by the time that order is executed. A series of negative slippages can cost a crypto trader a lot of money.
What is Slippage?
Slippage occurs when a trader must settle for a different rate than expected, between the period they enter the market and the actual trade execution. This happens in all markets including forex, stocks and crypto too. High volatility means that market liquidity is low and prices are fluctuating very quickly. Positive slippage or no slippage is not a problem, but negative slippage can significantly eat into profits.
According to the Global Cryptocurrency Exchange Trends, Report & Statistics March 2018, in order to buy $300,000 worth of Bitcoins on a regular cryptocurrency exchange, 46 transactions had to be made to fill the order, which resulted in the purchase of only 34.31 BTC, while much more BTC could be purchased via an OTC transaction.
Most cryptocurrency exchanges are still in their infancy. There is not always enough liquidity available on these exchanges to process large orders. Therefore, instead of orders being filled for a single price, large orders end up getting distributed over several smaller orders, with an increased price of each order.
IronX Exchange`s Ecosystem to Prevent High Slippage
The IronX Exchange solves many critical issues plaguing crypto exchanges, including the issue of costly slippage.
The IronX ecosystem is an interconnected platform, linked to multiple high calibre exchange partners. This will boost the trade volume significantly. This connectivity to various exchanges will allow IronX to provide profound order books, right from launch.
IronX is regulated by the Estonian Financial Intelligence Unit and will be regulated in Gibraltar and Malta too. It is exploring the opportunity to get a Payment Institution (PI) license under the FCA. It aims to make crypto trading a safe and convenient investment for all market participants.
