Price Impact

Price Impact is the effect a trade has on a token's price in a Uniswap AMM pool. For example, in a pool with $100,000 in liquidity, a $5,000 sale results in a price impact of approximately 5%. For large trades, it is generally better to split the transaction into several smaller trades executed over time. If the price impact is high, it may be better to wait for the pool's liquidity to increase or use an OTC trade.