The difference between the decision price (i.e. the price prompting the trading decision) and final execution price of the trade, including commissions, taxes and other fees. Investors will typically try to keep implementation shortfall as low as possible since this can dramatically affect final profits from trading. This desire is yet another reason why online trading and real-time quotes have been especially popular with investors. Also called slippage.
Related information about implementation shortfall:
- Implementation shortfall - Wikipedia, the free encyclopedia
In financial markets, Implementation Shortfall is the difference between the decision price and the final execution price (including commissions, taxes, etc.) ...
- Implementation Shortfall Definition | Investopedia
As such, implementation shortfall is the sum of execution costs and the opportunity cost incurred in case of adverse market movement between the time of the ...
- Implementation Shortfall
Implementation Shortfall – One Objective, Many Algorithms ... Perold (1988)1 defines implementation shortfall as the difference in return between a theoretical ...
- 1 The Expanded Implementation Shortfall ... - JP Morgan
classification system, the expanded implementation shortfall, is based on the work of ... Implementation shortfall is measured as the difference between the dollar ...
- Goldman Sachs Rolls Out OptimIS, New Implementation Shortfall ...
Nov 12, 2008 ... Whereas most implementation shortfall algorithms are doing a single optimization at the beginning of the trade to come up with a trade plan, ...
- What is Implementation Shortfall?
Brief and Straightforward Guide: What is Implementation Shortfall?
- T Standard, Version 2.0 Implementation shortfall - Russell Investments
“Implementation shortfall” shall be defined as the arithmetic difference between the return on ... Implementation shortfall is 0.30% or 30 basis points in this case.
- What is implementation shortfall? definition and meaning
Definition of implementation shortfall: The difference between the decision price ( i.e. the price prompting the trading decision) and final execution price of the ...