Q: What is Max Slippage, and why is it important?
A: Max Slippage is the predefined threshold that determines the maximum allowable difference between the trigger price against the upper or lower limit executed price of a trade. It prevents excessive slippage during market volatility, ensuring orders are not executed at a significantly unfavorable price.
Q: How does Max Slippage work?
A: Max Slippage sets a predefined threshold on the acceptable difference between the trigger price and the upper or lower limit executed price of a trade. If the current trading price exceeds the threshold, the order will be canceled fully by the system, preventing users from executing trades at unfavorable prices.
Example:
BTCUSDT.PERP has a max slippage of 0.25%.
Assuming that you place a trigger order at a trigger price of 30,000. When Mid Price reaches 30,000, the system will calculate the max slippage as follows:
30,000*1.0025 = 30,075 (Long Position)
30,000*0.9975 = 29,925 (Short Position)
Therefore, if the current price at the time of trigger order execution exceeds the threshold stated above, the order will be canceled fully.
Q: Is the Max Slippage calculated differently for open and close order(s)?
A: Yes, Max Slippage is calculated differently for open and closed order(s).
When placing an order to open a position, standard Max Slippage is applied.
When placing an order to close an existing position,the Max Slippage applied will be doubled.
Example:
BTCUSDT.PERP has a max slippage of 0.25%.
Assuming that you place a trigger order at a trigger price of 30,000 to close an existing position. When Mid Price reaches 30,000, the system will calculate the max slippage as follows:
Max Slippage for close order = 0.25%*2 = 0.50%
30,000*1.0050 = 30,150 (Long Position)
30,000*0.9950 = 29,850 (Short Position)
If the current price at the time of trigger order execution exceeds the threshold stated above, the order will be canceled fully.
Q: What is the Time-In-Force for Market, Trigger Market, and Limit orders in Flipster? How will it affect me?
A: In Flipster, Market Orders and Trigger Market Orders follow the IOC (Immediate-Or-Cancel) execution method, meaning they will execute immediately at the best available price and any unfilled portion will be canceled.
Limit Orders, on the other hand, use GTC (Good-Till-Cancelled), meaning they remain active in the order book until they are fully filled or manually canceled by the user.
Q: How can I check the Max Slippage for a specific symbol/contract?
A: Users can check the Max Slippage for each symbol/contract on the contracts page. It is advisable to review this information before placing orders, especially in volatile market conditions.
Q: How often does Max Slippage change for a specific symbol/contract?
A: Max Slippage values are predefined but may be subjected to periodic reviews or adjustments by the platform. Users are encouraged to stay informed by checking the contracts page regularly for changes such as (and not limited to):
Value of max slippage for each category.
Changes to the category for individual symbol/contract.
Q: Can I customize the Max Slippage for my orders?
A: No, Max Slippage is a non-customizable parameter set by the platform to ensure consistent risk management practices across all users.