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  1. Home
  2. /Glossary
  3. /Price Impact
Back to Glossary
trading

Price Impact

How much your trade moves the market price of an asset.

Definition

How much your trade moves the market price of an asset. Large orders in illiquid markets have high price impact. AMMs show estimated price impact before you confirm a swap.

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Related Terms

Slippage

The difference between expected and actual trade execution price.

Liquidity

How easily an asset can be bought or sold without significantly affecting its price.

AMM (Automated Market Maker)

A type of decentralized exchange that uses math formulas instead of order books to price trades.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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