> For the complete documentation index, see [llms.txt](https://tocen.gitbook.io/tocen-launchpad/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tocen.gitbook.io/tocen-launchpad/defi/swap/price-impact-and-slippage.md).

# Price Impact & Slippage

### Price Impact vs Slippage

These two are not to be mixed up:

* **Slippage** occurs because of **changing market conditions** between the moment the transaction is submitted and its verification.
* **Price impact comes from the limited liquidity** available to settle the transaction.

The price impact is **the difference observed between the total value of the entry tokens swapped and the destination tokens obtained** (in USD). 

The bigger the trade is, the bigger the price impact can be.

On the other hand, slippage refers to the **difference between the expected amount and the received amount** - it's due to competing transactions that pushed the price lower after the first transaction was submitted.