💧Slippage

Slippage refers to the difference between the expected price of a trade and the actual price at which the trade is executed. This variation can result from market volatility affecting the prices of tokens between the time an order is placed and when it is executed. Modifying slippage settings allows trades to be executed even if there is some negative variation price and can effect the amount of tokens or Solana you receive from a buy or sell.

For Buys: If you buy with 1 SOL and the token originally has a price of 0.1 SOL you expect to receive 10 $DOGE. With 20% slippage the trade can execute still if the token has increased to 0.12 SOL so you will receive a minimum of 8.33 $DOGE.

For Sells: If you sell with 10 $DOGE and the token originally has a price of 0.1 SOL you expect to receive 1 SOL. With 20% slippage the trade can execute still if the token has decreased to 0.8 SOL so you will receive a minimum of 0.8 SOL.

Note for pump.fun buys: slippage can change the sol amount you pay instead of the tokens received when you add slippage. So if you submit a transaction for 0.1 Sol at 20% slippage you could pay between 0 and 0.12 SOL for the tokens.