> For the complete documentation index, see [llms.txt](https://flipper-3.gitbook.io/flipper-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://flipper-3.gitbook.io/flipper-docs/flipper-trading/slippage.md).

# Slippage

## <mark style="color:$primary;">What Causes Slippage?</mark>

Slippage depends on:

* Order size
* Available liquidity
* Market volatility
* Execution venue
* Network conditions

Larger orders and volatile markets generally experience higher slippage. Flipper's Smart Routing engine can help reduce unnecessary slippage by selecting a suitable execution route.

## <mark style="color:$primary;">Slippage Tolerance</mark>

| <mark style="color:$primary;">**Lower Tolerance**</mark> | <mark style="color:$primary;">**Higher Tolerance**</mark> |
| -------------------------------------------------------- | --------------------------------------------------------- |
| **Better price protection**                              | Higher execution probability                              |
| **More rejected orders**                                 | Greater acceptable price deviation                        |

{% hint style="warning" %}
**Important** Setting slippage tolerance too low may cause orders to fail during volatile market conditions.
{% endhint %}