In financial markets, market impact is the effect that a market participant has when it buys or sells an asset. It is the extent to which the buying or selling moves the price against the buyer or seller, i.e., upward when buying and downward when selling. It is closely related to market liquidity; in many cases "liquidity" and "market impact" are synonymous. The financial institution that is seeking to manage its market impact needs to limit the pace of its activity (e.g., keeping its activity below one-third of daily turnover) so as to avoid disrupting the price.