Trading & Market Structure

Market Impact

Definition

What is Market Impact?

The price movement caused by placing or executing an order.

Example in practice

Selling a large position pushes the share price lower.

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The highest price a buyer is currently willing to pay for a security.

The lowest price a seller is currently willing to accept for a security.

The difference between the best available buying and selling prices.

An instruction to buy or sell immediately at the best available prices.

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