Price Impact
How much your trade changes the token's price. Big trades in small pools cause bigger price impacts, costing you more.
Example
Swapping $1,000 might have 0.1% price impact, but swapping $1 million in the same pool could have 5% impact.
Related Terms
Advanced Concepts
βοΈHow It Works
- 1
Pool Size Matters
Larger liquidity pools have less price impact per trade
- 2
AMM Curve
The bonding curve determines how much price moves per trade
- 3
Trade Size
Bigger trades move the price more
- 4
Net Cost
Price impact plus slippage determines your actual cost
πKey Numbers
<0.5%
Low Impact
acceptable for most trades
0.5-2%
Medium Impact
significant but may be OK
>2%
High Impact
consider splitting trades
πGetting Started
- 1Use DEX aggregators to split large trades across pools
- 2Check price impact before confirming trades
- 3Trade during low volatility periods
- 4Consider OTC desks for very large trades