Getting Started
You see €10. Why do you end up paying more?
An app displays a price. You press buy, and the result differs from what you expected. That need not be an error: a displayed price, an offer and an executed order are different things. Understand the difference before you confirm.
A price display is not a fixed checkout price
An overview may show the most recent traded price. That describes an earlier trade, not necessarily what someone now offers for your entire quantity. On a trading platform, buyers and sellers offer different quantities at different prices. Those offers can change.
The spread is the gap between the highest buy price and lowest sell price in an order book. A simple buy or conversion provider may also include a spread in its quote. Check the final offer and the service’s explanation, not just the large price on the home screen.
Fast execution may mean a different price
A market order tries to trade at prices available at that moment. If insufficient quantity is available at the best price, the remainder may execute at other prices. You may therefore receive several partial fills with an average price.
The difference between your expected price and actual execution price is called slippage. It can be favourable or unfavourable. Rapid price changes and limited available liquidity can increase the difference. A displayed price is therefore not a guarantee for a market order.
A fictional example, not an investment recommendation
Noor sees €10 for an imaginary token and wants two. In this simplified order book, one token is available for €10 and the next for €10.20. A market order for two could therefore cost €20.20: an average of €10.10 per token, before any fees.
That is €0.20 more than twice the first displayed price. In this example, the extra expense comes from the available selling prices. Platform fees may apply on top. These numbers serve only to explain the mechanism and do not represent a real token or trade.
A limit sets a boundary, not a guarantee
A limit buy order sets the highest unit price you accept. A limit sell sets a minimum. A €10 buy limit can prevent that order from executing above €10 per token, but the order may fill only partly or not at all.
A limit price does not protect against later market losses and does not automatically cap every additional fee. Check how long the order stays open and whether an unfilled portion remains. Simple buying or swapping features do not all offer the same order choices.
Check this before confirming
Compare the amount you pay with what you will actually receive. Check the order type, price or estimate, fees and any quote expiry. Some swaps call the permitted price deviation slippage tolerance: raising it accepts more deviation, not a better deal.
If the result is unclear, stop and read official guidance. Afterwards, check the execution confirmation and any open orders before trading again. You do not need to buy crypto to learn this: practise with the free website quizzes at three levels.
Original sources & further reading
- Coinbase Help — Order types
- Kraken Support — Trading glossary
- Coinbase Help — Understanding slippage and spread
Sources checked on .