Construct · 1 fields · 1 citations

execution: a standalone construct

One name. One construct. A landmark on the map.

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execution1 CONSTRUCTTrade executionPEROLD · FILLED ORDER

A single standalone construct; nearby constructs are located against it in the Collider. Tap a field for its definition, unit, and measures.

Finance

Filling a buy or sell order

In finance, execution is the completion of a buy or sell order in a market: an order to trade becomes an execution once it is actually filled, at a particular price, quantity, and time, and the quality of that fill is judged by how close the achieved price is to the price available when the decision was made. Perold's 1988 The implementation shortfall: Paper versus reality framed this gap, showing that the cost of trading is the difference between the value of a paper portfolio and the value actually realised once orders are executed. The referent is the filling of a market order, scaled by price and speed and assessed as best execution, not the running of a program, the completion of a deed, or the technical performance of an artist.[1]

Unit
One filled order, described by its price, quantity, and time of fill
Recovery means
Not applicable
Measured by
Assessed by implementation shortfall, the gap between decision price and achieved price, and by fill speed and completeness

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Nearby constructs

act2 fields · 2 citationsjingle · one word, two constructsslippage2 fields · 2 citationsjingle · one word, two constructssemantics2 fields · 5 citationsjingle · one word, two constructs

References

  1. Perold, A. F. (1988). The implementation shortfall: Paper versus reality. The Journal of Portfolio Management, 14(3), 4–9. https://doi.org/10.3905/jpm.1988.409150

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