RiskPro
Market Impact
The price movement caused by the execution of a large order, where the act of trading itself moves the market against the trader.
Last updated: February 10, 2026
1
A trader begins executing a large order (e.g., 50 lots of EUR/USD).
2
The first portion fills at the current price, consuming available depth.
3
As depth is consumed, subsequent fills execute at progressively worse prices.
4
Other participants may detect the large order and adjust their quotes.
5
The total market impact is the difference between the initial price and the average execution price.