easy · Market Microstructure market-impact
An algorithm is designed to execute a large buy order of 50,000 shares by distributing the trades across the day in proportion to the historical average volume of the stock for each hour.
Which type of execution algorithm is this?
- TWAP (Time-Weighted Average Price)
- Iceberg Algorithm
- VWAP (Volume-Weighted Average Price)
- Implementation Shortfall Algorithm
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