medium · Market Microstructure market-impact
A trader executes a 100,000 share buy order. The pre-trade midpoint was $50.00 and the post-trade midpoint is $50.08. The execution was done via a dark pool at the midpoint, avoiding all temporary impact.
What was the total cost of the trade in basis points?
- 8 bps
- 4 bps
- 0 bps
- 16 bps
Sign up free to see the explanation and track your rank →
More Market Microstructure market-impact practice
- If 10,000 shares are eventually bought at an average price of $80.15, what is the delay co
- A trader places a large buy order for 50,000 shares of a sma… — How would a microstructure
- How should the VWAP algorithm adjust its execution rate for the remaining 5.5 hours to sta
- How will their optimal trajectory differ from a risk-neutral trader?
- If the trader's risk aversion doubles to lambda = 0.002 while the stock's volatility and l
- Using a VWAP algorithm, how many shares should be traded in Hour 3?
- The historical volume profile shows that volume is highest at the open (22%) and close (24
- What is the 'Opportunity Cost' component of the Implementation Shortfall?