7.2.0. Slippage Tolerance
One new terminology you will see often when using a Dex is Slippage Tolerance.
Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed.
By setting slippage tolerance, you basically set a limit on price movement of the token you want to swap – a high slippage tolerance rate means higher fees than a low one.
If the slippage tolerance for swap is too low, you will get an error message. For example, on Pancakeswap, you will get this error message:
“The transaction cannot succeed due to error: PancakeRouter INSUFFICIENT_OUTPUT_AMOUNT. This is probably an issue with one of the tokens you are swapping.”
You can remedy this error by either:
(a). increasing the slippage tolerance, say from 0.1% to 0.5%.
(b). increasing the amount of the coin you want to swap to.
This second method is much more economical in correcting the slippage tolerance error. You can simply do this by changing the last digit of the swap number to the next higher digit.
For instance, if you want to buy 2000 coins of Safemoon, and you get the slippage tolerance error message, simply change the 2000 to 2001.
It appears this second method applies to only BNB Smart Chain transactions.