← DeFi glossary
Glossary · P
Price Impact
The change in token price caused by your own trade on an AMM. Large trades deplete one side of the pool reserve, driving the price up for buyers and down for sellers. Price impact is deterministic and calculable before executing — DEX interfaces show estimated price impact as a percentage. Price impact is distinct from slippage (which also includes price movement from other traders). Larger trades in shallower pools have higher price impact.
Last updated