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Slippage & price impact

Every trade you place changes the market price. The bigger the trade relative to the market's depth, the more the price moves against you. This is called slippage.

Example

Market price (YES)KSh 60
You buy100 shares
Average price you payKSh 62.40
Slippage+4%
New market price afterKSh 65

How to keep slippage small

  • Trade in smaller chunks instead of one giant trade.
  • Look at the slippage preview in the trade ticket before confirming.
  • Prefer markets with high liquidity (more depth = less slippage).