Frequently Asked Questions
Q: There's a Price impact value I can see changing dynamically once I enter an amount of a traded asset or/and take a leverage. Apparently, it works as some sort of fee, or what is it exactly?
A: Price Impact is not a fee, but the actual impact your trade produces over the market price of an underlying asset pair. It works as follows:
- You enter the amount of asset A to take a position in asset B.
- The market pool of asset A increases for exactly this amount.
- This shifts the overall ratio of asset A/asset B making asset A cheaper. Specifically, this price change (as impacted by your trade, hence the name) can be reflected by the following equation: