# What is price impact?

Price impact refers to the immediate effect your swap has on a token's price. Swapping a large amount relative to the liquidity available in the pool will result in a greater price impact.

For example, if you attempt to buy 1,000 CTC in a CTC/USDC liquidity pool that holds only 5,000 CTC and 5,000 USDC, your trade will significantly move the market. This results in receiving fewer USDC per CTC compared to swapping a smaller amount, such as 10 CTC\
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Price impact can be seen on Penguinswap on each swap as shown below: <br>

<figure><img src="https://2811362010-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FpEpjP0BsCm3NNzRgxkoy%2Fuploads%2F5VMBDqyVEgV3VTvJmAt6%2Fimage.png?alt=media&#x26;token=83e93531-a738-4052-80b7-5f9bcf82181d" alt=""><figcaption></figcaption></figure>