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Curious question, since a one million dollar bitcoin sell is tiny in the schema of daily volume, why would it incur slippage?
by nodesocket 9y ago
Curious question, since a one million dollar bitcoin sell is tiny in the schema of daily volume, why would it incur slippage?
- runeks 9y agoVolume and order book depth are two unrelated figures. Volume is roughly proportional to trading fees, while slippage is a function of order book depth. It's easy to increase volume: relinquish trading fees. Getting people to deposit USD/BTC on your exchange, and lock it in a sell/buy order, is a different matter though, since it mainly depends on trust in the company behind the exchange (since you will lose that money if the exchange goes bust).