price-impact

---

title: What is price impact?

sidebar_label: Price impact

description: Learn what price impact means and why it matters when swapping tokens on Feddex.Capital.

---

# What is price impact?

Price impact shows how much your trade may move the market price compared with the current available price.

A low price impact usually means the market has enough liquidity for your trade size. A high price impact means your swap may significantly affect the execution price.

## Why price impact matters

Price impact is important because it can reduce the amount of tokens you receive.

For example, if a token has low liquidity and you make a large swap, your order may consume a large part of the available liquidity. This can make the final price worse than expected.

## Common reasons for high price impact

High price impact can happen when:

- the token has low liquidity;

- the swap amount is large compared with the pool size;

- the token is new or volatile;

- the route has limited available liquidity;

- market conditions are moving quickly.

## What should I do if price impact is high?

You can consider:

- reducing the swap amount;

- waiting for better liquidity;

- checking a different token pair;

- reviewing the token more carefully;

- avoiding the trade if the risk feels too high.

## Important reminder

High price impact can be a warning sign. Always review the swap details before approving a transaction.