easy · Market Microstructure market-impact
What is meant by 'participation rate' in the context of a volume-based execution algorithm?
- The speed at which the algorithm reacts and responds to newly posted quotes in the order book.
- The percentage of total market volume that the algorithm's orders represent during a specific period.
- The ratio of resting limit orders to aggressive market orders that the execution algorithm uses.
- The total number of distinct exchanges and alternative trading venues the algorithm is presently connected to.
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