> For the complete documentation index, see [llms.txt](https://docs.goldlink.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.goldlink.io/strategies/gmx-funding-rate-farming/price-impact.md).
# Price Impact
Price impact is the change in the price of an asset that occurs as a result of a trade. It's determined by the size of the trade relative to the available liquidity, as well as other factors like order book depth and the swap protocol's algorithm.
In our GMX Funding Rate Farming strategy, price impact can be positive or negative depending on the long/short liquidity balance in the market you are trading in and the timing of the trade. If the trade improves the long/short balance, then there would be a positive price impact; otherwise, there would be a negative price impact.
For swaps, a positive price impact would increase the number of tokens received, while a negative price impact would decrease the number of tokens received. When trading on GoldLink, users can take advantage of favorable price impact to best time market entry and improve
We account for this change in market price when launching a position, ensuring that a user's perpetual/spot position remains balanced despite positive or negative price changes and is delta-neutral.
To help users understand how this may affect their positions, we’ve added price impact predictions to the trading interface and charts illustrating GMX liquidity balance. These tools provide another indicator traders can use to find the best time to enter an exit position on GoldLink.
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