Slippage
Slippage refers to the difference between the expected price of a trade and the actual price at which the trade is executed. This phenomenon typically occurs in markets with low liquidity or during periods of high volatility.
Slippage is measured in slippage basis points (bps), which is a unit of measurement for the percentage difference between the requested price and the actual price. Where 50 slippage basis points is equal to 0.5%.
When placing an order through the Pump.fun Solana Trading API, the requested price might not be the exact price at which the order is filled. This can happen due to several reasons:
Market conditions: Sudden price movements or low liquidity can cause price fluctuations between when the trade is requested and when it is executed.
Order size: Large orders relative to the available liquidity may cause the price to shift as the order is filled.
If a API endpoint requires a slippage parameter, you can pass a slippage value to the endpoint.
The slippage parameter is optional and defaults to 500, unless otherwise specified by the API endpoint.
Slippage Example
{
"slippage": 500,
}