Why Did My DEX Swap Cost More Than Expected?

Ever swapped tokens on a DEX and noticed the price changed before your trade went through? That’s price impact the hidden cost of trading against a liquidity pool, not an order book.

Price impact is how much your trade shifts the token price in a pool.
Slippage is the extra difference between your expected price and what you actually get, often due to market moves during your trade.

Quick Example:
If you try to swap a big chunk of a small pool, your trade can spike the price meaning you get less for your money. In a bigger pool, the same trade barely moves the price!

How to Avoid Price Impact Wrecks:

1. Trade in high-liquidity pools (check pool stats before swapping).

2. Break big trades into smaller ones.

3. Adjust your slippage settings wisely.

4. Use limit orders when available.