Trade Execution: Transactions Costs

Trade Execution: Transactions Costs

Intuition Publishing Pty Ltd
Updated Sep 25, 2020

Trade implementation or transaction cost analysis (TCA) provides a means of monitoring different trading strategies and also different traders. We look at the different implicit and explicit costs that are incurred when a trade is executed. While the execution costs may discourage some trades, the opportunity costs of not trading immediately can discourage traders from deferring the decision to trade.