❗Slippage Tolerance

Slippage Tolerance: Navigating Trade Prices in Fluid Markets.

Slippage Tolerance is the difference between the amount at the confirmation time and the actual price of the transaction. It quantifies the disparity between the price you expect (Current Market Price) and the price at which the trade is executed (Executed Trade Price). It is set as a percentage of the total swap value. The default value on Uniswap for slippage tolerance is 0.5%.

Setting an appropriate slippage tolerance helps traders ensure their trades are executed near their desired price points, even in rapidly fluctuating markets. Depending on your trading strategy, you can adjust the value to make the most of the trade.

Slippage Percentage = (Current Market Price – Executed Trade Price) / Current Market Price.

Let's understand this with an example; Given:

• Current Market Price (CMP) of SALTZ = $0.50

• Executed Trade Price = $0.48

Using the formula: Slippage Percentage = (Current Market Price – Executed Trade Price) / Current Market Price

Plug in the numbers:

Slippage Percentage = ($0.50 - $0.48) / $0.50

Slippage Percentage = $0.02 / $0.50

Slippage Percentage = 0.04 or 4%

In this instance, the Slippage Tolerance is 4%.

Using ETH you can swap any other coins to SALTZ.