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# What is price impact?

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When a large transaction is executed on a blockchain, it can cause a significant change in the price of the asset being traded. This is called price impact.
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If the market has a large amount of liquidity, a single transaction is unlikely to have a significant impact on the price. However, if the market has low liquidity, a large transaction can cause the price to move significantly.

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If you make a swap with rare tokens for a large amount, it may have a significant price impact.
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But you don't have to worry, you will know about the impact on the price before you make a swap. In case of a significant price impact, you will see the percentage of influence next to a yellow or red warning triangle.

<figure><img src="/files/uFZGBP97wZhJunFWEH7g" alt=""><figcaption><p>A transaction can cause price impact if the market has low liquidity</p></figcaption></figure>