How do you guys handle slippage on limit orders for less liquid pairs?

Question

Been trying to scale into some smaller cap alts ($CSPR, $ROSE) using limit orders to avoid market takes, but finding I'm consistently getting filled a few basis points off my set price on the larger blocks. It's not a huge deal on single trades but over a month of active trading, it adds up to meaningful lost edge. Am I just being too greedy with my limit placements, or is there a trick to anticipating this better on Binance/KuCoin beyond just widening the spread slightly? Does anyone just factor a standard percentage of slippage into their P&L calculation from the start?

valentina_santos · Accepted Answer

On less liquid pairs, a few basis points of slippage on larger limit orders isn't uncommon, especially if you're hitting the order book hard. You might consider breaking up your larger blocks into smaller tranches to reduce your footprint, even if it means more orders.

varga_maja · Answer

It's fairly standard on those smaller caps. Unless you're trading with serious size, you're likely better off just accepting it or spreading your orders out more. The bid-ask spread itself is already wider than a few basis points on most of those.

How do you guys handle slippage on limit orders for less liquid pairs?

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