# What is price impact?

{% hint style="info" %}
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.
{% endhint %}

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.

{% hint style="warning" %}
If you make a swap with rare tokens for a large amount, it may have a significant price impact.
{% endhint %}

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>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.yad.finance/knowledge-base/basics/what-is-price-impact.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.