easy · Market Microstructure
What happens to the 'Opportunity Cost' component of IS if an order to buy is cancelled and the stock price subsequently falls below the decision price?
- It becomes negative (an opportunity gain).
- It is reclassified as 'Execution Cost' since no shares were filled.
- It is automatically set to zero by the clearinghouse.
- It remains a positive cost because the trade was not completed.
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