Articles on: Instant Liquidity

What is “Price Impact”?

The price impact is the influence your particular trade will have on the ROY market price if executed. You will always see the estimated price impact before you submit your order. This applies for both buys & sells. Logically, the more you sell, the bigger negative price impact you’ll make and vice versa - the more you buy, the more you’ll push the price up. Remember, that the price impact shown will already affect your order, as the price changes at each and every ROY you buy/sell. Therefore, the bigger your purchase order - the bigger the average price you’ll pay.

It is important to also compare the definition of slippage, as it is somewhat similar, but works differently. The main difference between the price impact and slippage, is that slippage is influenced by external orders (think about other users trading at the same time), while the price impact is YOUR order influence on the price.

There is a security limit (called Limit down): it's impossible to buy when the pool falls below 100 ROYs, or sell when the pool is below 100€ (this case that may arise especially on talents with a very low number of ROYs).

So essentially, the slippage means that in very “hot” and volatile situations, many people might be trading at the same time, and the price shown on your trading screen might actually differ from the execution price you will get. The default slippage remains the same as before: 10%. If your order goes above that slippage, we will automatically cancel and inform you about it. Users can now choose % slippage in their settings.

Updated on: 29/08/2023

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