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Price Impact

Price impact is the change in market price caused by executing a trade, particularly when the order is large relative to available liquidity.

Why it matters to you

Suppose a market appears to offer YES at: $0.55 but only a small number of contracts are available near that price. A large purchase may consume those orders and continue filling at: $0.56 $0.58 $0.60 and beyond. The effective entry price may therefore be considerably worse than the initial displayed price.

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