Liquidity & Slippage

Liquidity

Liquidity is how easily you can trade size without moving the price.

Slippage

Slippage is the difference between the expected price and the executed price. Thin books = higher slippage risk.

Reduce Slippage

1. Use limit orders.
2. Split large orders.
3. Avoid illiquid sessions.

Skeleton lesson — will add interactive depth heatmap later.