Price Impact
The change in an asset's market price caused directly by a single trade.
Price impact is the percentage change in the asset's price as a direct result of your trade. It is closely related to slippage but specifically refers to the effect your trade itself has on the market, rather than other trades that might execute before yours.
In AMMs, price impact is determined by the formula: a constant product pool with $1M in liquidity will see roughly 1% price impact from a $10,000 trade. Deeper pools have lower price impact for the same trade size.
Traders managing large positions monitor price impact carefully to avoid unfavourable execution. Breaking a large trade into smaller ones over time (TWAP execution) is a common strategy to minimise aggregate price impact.