When trading (buying or selling) tokens, price impact is how much your own trade changes the token’s price. It depends on how big your trade is compared to the liquidity available for that token. The larger your trade, the more it moves the price, and the less favourable the rate you get. Smaller trades, or trades in tokens with more liquidity, usually have a lower price impact.
Price impact is different from slippage. Price impact is caused by the size of your trade, while slippage comes from market price changes between when you submit the trade and when it’s completed.
Tip: Each smaller transaction has a lower price impact than one large transaction. However, splitting a trade into smaller transactions doesn’t guarantee a better overall price. The token price changes after each transaction, and other users’ trades may raise or lower the price in between.