Market Impact vs Participation Rate Execution

Quick comparison to help you distinguish these two crypto terms.

Market Impact
intermediate
market_structure

Market impact is the degree to which a trader's own order moves the asset's price against them during execution, caused by consuming available liquidity in the order book.

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Participation Rate Execution
intermediate
strategy

Algorithmic execution strategy that executes orders proportional to market volume, buying or selling at rates matched to ongoing market flow to minimize market impact.

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