What slippage tolerance should I use?
Slippage tolerance should be tight for liquid trades and only wider when volatility or thin liquidity makes failed trades more likely.
The short version
Use the lowest slippage tolerance that still lets a normal trade execute. Liquid pairs can often use tight settings. New tokens, volatile launches, and thin DEX pools may need wider tolerance, but wider tolerance also increases the chance of a worse fill.
What the setting does
Slippage tolerance is the maximum price deterioration you accept before the trade fails. If your tolerance is 1%, the trade should not execute more than about 1% worse than the quoted price, before considering other costs or edge cases.
Why higher is risky
Higher tolerance can expose you to worse execution, sudden pool movement, and in some DEX contexts sandwich attacks. It can make sense during volatile conditions, but it should not be treated as free convenience.
How to choose
Check the pair's liquidity, your trade size, price impact, recent volatility, and whether the token charges transfer taxes. If price impact is already high, raising tolerance may hide a bad trade rather than fix it.
Practical approach
Start tight, reduce order size if needed, avoid rushing illiquid launches, and compare venues. If a trade only works with extreme tolerance, that is usually a warning about liquidity or token mechanics.
Related questions to ask AskClash
- What is crypto slippage?
- What is a maker fee and taker fee?
- Why did my DEX trade execute at a worse price?