Slippage tolerance is a feature that allows traders to set the maximum amount of price movement they are willing to accept when executing a trade. This feature is important because it helps traders manage their risk by limiting the amount of price movement they are exposed to. For example, if a trader sets their slippage tolerance to 0.1%, they will only execute a trade if the price moves no more than 0.1% from the time they place the order until the time it is filled. This helps to ensure that traders don't suffer large losses due to large price swings. Slippage tolerance is also important because it helps traders to execute their trades quickly and efficiently, as they know that their orders will only be filled if the price movement is within the set limits.
