Print service provided by iDogiCat: http://www.idogicat.com/
home logo





Home > Finance > Algorithmic Trading > Execution Dilemma

Execution Dilemma

  • Market impact is a decreasing function with time and volume
  • Timing risk is an increasing function with time and volume.

So trading too aggressively will cause investors to incur high market impact cost and low timing risk; Trading too passively means having low market impact cost but high timing risk.