If you trade at market price, you will definitely incur this cost.
3. Why does a market order always incur a price difference?
Market price buy → Accept the seller's lowest price
Market sell → Accept the buyer's highest price
Fast, but expensive The price difference is your "invisible fee".
4. Liquidity determines the size of the price spread.
Good liquidity (many orders)
small price difference
It's not easy to push the price with large orders.
Poor liquidity (few orders)
Large price difference
A slight buy or sell can cause the price to fluctuate dramatically.
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1. What truly affects the transaction during trading is not just the price.
In cryptocurrency trading, the transaction price ≠ the price you see, and it is also influenced by these factors:
Trading Volume: Low volume makes it easy for prices to be pushed around.
Market liquidity: Poor liquidity, high transaction costs
Order type: Market or Limit, determines whether you will incur a loss.
So: it may not be possible to execute at the ideal price.
2. What is the bid-ask spread?
Bid-Ask Spread = Lowest Selling Price - Highest Buying Price
The buyer wants to buy cheaply.
The seller wants to sell at a high price.
The spread in between = Buy-sell price spread
If you trade at market price, you will definitely incur this cost.
3. Why does a market order always incur a price difference?
Market price buy → Accept the seller's lowest price
Market sell → Accept the buyer's highest price
Fast, but expensive
The price difference is your "invisible fee".
4. Liquidity determines the size of the price spread.
Good liquidity (many orders)
small price difference
It's not easy to push the price with large orders.
Poor liquidity (few orders)
Large price difference
A slight buy or sell can cause the price to fluctuate dramatically.