Price Impact
DeFi
Execution slippage from trade size versus available liquidity.
Price impact is the change in price caused by your trade size relative to liquidity. Large orders in shallow markets move the price and increase costs.
Frequently asked questions
How do I reduce price impact?
Split orders, use deeper pools, or let an aggregator route across venues.Why did my trade move the price?
Your trade size was large relative to available liquidity at the quoted price.Is price impact the same as slippage?
Impact is your effect on price. Slippage is the difference between expected and actual execution. They are related.