In this track: How people use Ethereum
intermediate · 3 MIN READ

Price impact versus slippage

Your trade can move a price, while execution can also differ from a prior quote.

LET’S PICTURE IT

Taking a large portion of stock can change the shop’s rate; a price changing before you arrive is another effect.

SEE IT FOR YOURSELF
A valid counter call, step by stepStep 1 / 4
A valid counter call, step by stepFunction requestincrement()No argumentsBefore executionstored count0A local teaching example with a defined starting stateIncoming callCheck function dispatchCheck coded conditionsRules passConditions passContinue executionA failed check can revert insteadCalculation0 + 1Result: 1Storage writecount = 1Persists if call succeedsCalculating a local value and storing it are separate stepsPersistent statecount1Later readGetter reports 1No new incrementState, logs and browser display have different roles

This example begins with count zero and a request to call increment(). No real contract is deployed.

Animated local teaching model. No wallet, RPC or live blockchain data. Some labels and hashes are abbreviated for readability.

Price impact comes from the action

In many pool models, trading against finite reserves changes the marginal exchange rate. A larger trade relative to available liquidity can have a larger average-price effect.

Slippage describes a difference

Users often discuss slippage as the difference between an expected or quoted result and actual execution. Market movement, ordering and the model’s own trade impact need to be distinguished when interpreting a quote.

A tolerance becomes a constraint

A minimum output or maximum input can bound what the contract accepts. It must use the correct raw units and context. A generous tolerance can permit execution that a user would not otherwise want.

A setting is not protection against every risk

A slippage bound does not certify token safety, oracle correctness or administrator behavior. Read the full requested function and conditions rather than relying on one percentage slider.

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Does a minimum-output setting certify that the token itself is trustworthy?

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