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Glossary Term

Price Impact

How much your own trade moves the market price against you — distinct from slippage, and larger in thin pools.

Price impact is the change in price caused by your trade’s size relative to available liquidity. In an AMM, buying a big chunk of a pool walks the price up the curve — the more you buy, the worse each successive unit costs. DEX interfaces show estimated price impact before you confirm.

It’s related to but distinct from slippage: price impact is the predictable cost of your size against the pool; slippage is the unpredictable drift between quote and execution. A high price impact warning (say, over 1–2%) means the pool is too thin for your order — split it, route it, or reconsider. Ignoring it is how people accidentally lose 10% on a single swap.

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