diff --git a/docs/configuration.md b/docs/configuration.md
index 6c0795c67..d2519d58a 100644
--- a/docs/configuration.md
+++ b/docs/configuration.md
@@ -613,6 +613,7 @@ Once you will be happy with your bot performance running in the Dry-run mode, yo
 * Orders are simulated, and will not be posted to the exchange.
 * Market orders fill based on orderbook volume the moment the order is placed.
 * Limit orders fill once the price reaches the defined level - or time out based on `unfilledtimeout` settings.
+* Limit orders will be converted to market orders if they cross the price by more than 1%.
 * In combination with `stoploss_on_exchange`, the stop_loss price is assumed to be filled.
 * Open orders (not trades, which are stored in the database) are kept open after bot restarts, with the assumption that they were not filled while being offline.
 
diff --git a/freqtrade/exchange/exchange.py b/freqtrade/exchange/exchange.py
index 9651679b2..b59bb98ec 100644
--- a/freqtrade/exchange/exchange.py
+++ b/freqtrade/exchange/exchange.py
@@ -863,8 +863,8 @@ class Exchange:
         if self.exchange_has('fetchL2OrderBook'):
             orderbook = self.fetch_l2_order_book(pair, 20)
         if ordertype == "limit" and orderbook:
-            # Allow a 3% price difference
-            allowed_diff = 0.03
+            # Allow a 1% price difference
+            allowed_diff = 0.01
             if self._dry_is_price_crossed(pair, side, rate, orderbook, allowed_diff):
                 logger.info(
                     f"Converted order {pair} to market order due to price {rate} crossing spread "