BitMart has announced a new Slippage Protection Plan aimed at minimizing risks associated with price changes in the cryptocurrency market.
Impact of Slippage on Trading Strategies
Slippage occurs when a trade's executed price deviates from the expected price. This issue is particularly prevalent in volatile markets and low-liquidity environments and is exacerbated when using leverage. For example, a slippage of 0.5% at 50x leverage can increase losses by up to 25%, making it a significant concern for active traders.
Logic Behind BitMart’s Slippage Protection Plan
The plan offers compensation for slippage losses (greater than 0.05%) caused by platform technical issues or liquidity shortages. Traders can apply for compensation by submitting trading records, with support of up to 200% for new users in their first month.
BitMart’s Technological Edge
To minimize slippage, BitMart utilizes advanced liquidity management systems and precise execution mechanisms. Its deep liquidity pools enable efficient order execution, even in volatile conditions, contributing significantly to lowering slippage.
BitMart's Slippage Protection Plan represents a step towards enhancing trust and transparency in the cryptocurrency market, providing traders with an added layer of security.
