easy · Market Microstructure market-impact
What is the primary objective of measuring Implementation Shortfall (IS)?
- To determine the profit and loss generated by a firm's high-frequency market making desk.
- To calculate the total cost of implementing an investment decision relative to a benchmark price.
- To ensure that every trade in the order is executed exactly at the day's Volume-Weighted Average Price.
- To measure the degree of bid-ask bounce exhibited by a security across a specific trading time horizon.
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