# Price Impact

Price impact refers to the effect of your trade on the price of an asset within a pool. When a large order is executed, it can cause the price of the asset to increase or decrease, respectively, due to the AMM algorithms. 

Price impact is important as it affects the execution price and slippage of your trade. You can adjust your slippage and transaction deadline in the settings. In the scenarios where a large slippage occurs, it is recommended to review your transaction carefully and input extra confirmation if needed.