TRADING GLOSSARY
Market impact
Market impact is the effect that an order or trading activity has on an instrument's price. It depends on factors such as order size, available liquidity, and execution speed, and can contribute to differences between expected and actual execution prices.
EXAMPLE
In a hypothetical unchanged order book, a buy order takes 100 shares at $10 and 100 at $10.10, producing an average execution price of $10.05 before fees.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure