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Author Topic: Is slippage a good thing?  (Read 650 times)
theonewhowaskazu
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October 28, 2013, 02:37:16 PM
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It seems like every large bubble is started by a big order with huge slippage. Same thing for each bubble crash, but in reverse. Whoever triggers one of those makes a fucking mint. So, does that make slippage good, contrary to for example slippage when buying a stock?

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notme
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October 28, 2013, 02:39:17 PM
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On Bitcoin/Gold/etc...

It seems like every large bubble is started by a big order with huge slippage. Same thing for each bubble crash, but in reverse. Whoever triggers one of those makes a fucking mint. So, does that make slippage good, contrary to for example slippage when buying a stock?

Slippage and making a "fucking mint" off of said slippage are both a symptom of low liquidity.  If bitcoin liquidity ever becomes better, both slippage and the profits from triggering slippage at the correct time will become less.

https://www.bitcoin.org/bitcoin.pdf
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Zaih
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October 28, 2013, 02:43:36 PM
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Slippage is not too good if you're on the wrong end of it, can be good news for other people though..
theonewhowaskazu
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October 29, 2013, 03:06:15 AM
 #4

On Bitcoin/Gold/etc...

It seems like every large bubble is started by a big order with huge slippage. Same thing for each bubble crash, but in reverse. Whoever triggers one of those makes a fucking mint. So, does that make slippage good, contrary to for example slippage when buying a stock?

Slippage and making a "fucking mint" off of said slippage are both a symptom of low liquidity.  If bitcoin liquidity ever becomes better, both slippage and the profits from triggering slippage at the correct time will become less.

Sure but what I'm trying to say is that the slippage is a good thing from the perspective of the person triggering it. Normally, high slippage is considered a bad thing, like in traditional forex trading.

fxkevin
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October 29, 2013, 06:28:45 AM
 #5

Slippage, in any market, can be positive of negative, so it can be good or bad, but is always good for one side of the transaction and always bad for the other.

As someone already stated most slippage is caused by a lack of liquidity, however it can also be caused by latency, and as the bitcoin market grows, and as institutional LPs begin to offer pricing on XBT, while the liquidity issues should subside a bit, depending on the market demand of coarse, latency will increase.

Cheers...
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