What is price impact?

Price impact is the difference between the current market price and the expected price for a trade. It is primarily determined by the size of your trade relative to the amount of liquidity in the pool. As the number of tokens you buy from the pool increases, the price of the token also increases. This unfavorable change in price is called price impact. If you see high price impact when swapping, try trading a smaller amount or swapping in a pool with higher liquidity.