Since Binance has the highest trading volume in many markets, they also have the lowest slippage.
Slippage is the difference in price between the market price and what you actually pay for your order.
This is extremely important for high volume trader since they can drain parts of the order book in the market. On the other hand, a trader can place a limit order but it might take very long time to fill that order if the volume is low and the slippage is high.
Lets take an example. We can reuse the previous screenshot from Binance.
Lets say you want to buy 10 ETH at market price. Look at the sell order book in the Amount /ETH) column. Here, you can see the lowest sell order only include 0.745 ETH and next 6.258 ETH. You must also buy from the 3rd line, Sell 3, to fill you order which will look like this
- 0.745 ETH for 0.031515 BTC
- 6.258 ETH for 0.031516 BTC
- 2.997 ETH for 0.031517 BTC
So, your average price will not be represented by the market price in this case, even if your order was relatively small.
Remember, that this example is taken from a liquid market with high trading volumes. If you are about to trade smaller markets you must check the order book before you go for a market order.