It grows with order size relative to available liquidity, which is why thin markets punish large orders. Most interfaces let you set a slippage tolerance that cancels the trade if it exceeds your limit.
In illiquid markets such as small NFT collections, effective slippage can be extreme.
This definition is educational and not financial advice. Crypto is volatile and high-risk — always do your own research.
Keep learning
New to crypto, or filling in the gaps? Work through the essentials in Learn, browse every term A–Z, or see live prices for the coins these concepts power.