Execution quality and order selection

Costs and order choice as part of the strategy.

Execution quality and order selection

| Concept | Explanation | |---|---| | Market order | Prioritizes immediate execution. | | Limit order | Controls price but may not execute. | | Stop order | Triggers after a selected level is reached. | | Participation rate | Order size relative to available market volume. | | Execution benchmark | Reference such as arrival price or VWAP. | | Transaction cost | Spread, fees, slippage, market impact, and taxes. |

Module knowledge check

  1. What is the main advantage of a hybrid strategy?
  2. Why can scaling reduce timing risk but increase complexity?
  3. When is dollar-cost averaging inappropriate?
  4. Why should entry and exit logic be consistent?

velaHita Academy home