Reduced market impact is a key benefit of order fragmentation. When a large order is executed, it can significantly move the market, causing price volatility. This can lead to:

1. _Unwanted price movement_: The market price may move against the trader's interests, resulting in a worse execution price.

2. _Slippage_: The trader may experience a significant difference between the expected and actual execution prices.

3. _Market disruption_: Large orders can disrupt the market, causing sudden and unexpected price movements.

By fragmenting large orders into smaller pieces, traders can minimize market impact and reduce the risk of unwanted price movement, slippage, and market disruption. This is especially important for:

1. _Institutional traders_: Managing large portfolios and executing large orders.

2. _High-frequency traders_: Executing high-volume trades at rapid speeds.

3. _Algorithmic traders_: Using automated strategies to execute trades.

By reducing market impact, order fragmentation helps traders achieve better execution prices, minimize slippage, and maintain a more stable market environment.