# Price Impact Price impact refers to **the difference between the current pool price and the actual execution price** caused by your trade. When you swap a large amount — especially in a pool with low liquidity — your trade will significantly effect the pool balance, thus leads to a worse rate for your order. * **Lower liquidity = higher price impact** * **Deeper liquidity = smoother trades** Pools with deep liquidity around the current price can handle larger trades with minimal slippage, leading to better execution. To minimize price impact: * Break large trades into smaller chunks when possible. * Keep an eye on the estimated price impact shown in the UI before confirming your swap. > **Tip:** Byreal’s concentrate liquidity pools around active prices to reduce price impact and slippage. In addition, Byreal combines multiple liquidity sources with RFQ (Request for Quote) routing to secure the best possible execution and further minimize price impact on every trade. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.byreal.io/resources/knowledge/price-impact.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.