Implementation Shortfall

In trading terms, the difference between the prevailing price or value when a buy or sell decision is made with regard to a security and the final execution price or value after taking into consideration all commissions, fees and taxes. 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 trading decision and order execution.

In order to maximize the potential for profit, investors aim to keep implementation shortfall as low as possible. Investors have been helped in this endeavor over the past two decades by developments such as discount brokerages, online trading and access to real-time quotes and information.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Implementation shortfall — In financial markets, Implementation Shortfall is the difference between the decision price and the final execution price (including commissions, taxes, etc.) for a trade. This is also known as the slippage . Agency trading is largely concerned… …   Wikipedia

  • Algorithmic trading — In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black box trading, or robo trading, is the use of computer programs for entering trading orders with the computer algorithm deciding on certain …   Wikipedia

  • Nettrader — is an electronic trading platform which is based on Algorithmic trading is used for trading commodities online through electronic communication network. The Etrading Platform engaged to operate at the foreign exchange market and Commodity Futures …   Wikipedia

  • Transaktionskostenanalyse — Die Transaktionskostenanalyse wertet sowohl im Vorfeld (selten: Transaktionskostenvorhersage) als auch nach Abschluss einer Transaktion die Transaktionskosten aus mit dem Ziel, diese zu minimieren[1]. Nach der Transaktionskostentheorie entstehen… …   Deutsch Wikipedia

  • Military Affairs — ▪ 2009 Introduction        Russia and Georgia fought a short, intense war in 2008, fueling global fears of a new Cold War. On August 7 Georgia launched an aerial bombardment and ground attacks against its breakaway province of South Ossetia.… …   Universalium

  • Business and Industry Review — ▪ 1999 Introduction Overview        Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… …   Universalium

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material …   Universalium

  • China — /chuy neuh/, n. 1. People s Republic of, a country in E Asia. 1,221,591,778; 3,691,502 sq. mi. (9,560,990 sq. km). Cap.: Beijing. 2. Republic of. Also called Nationalist China. a republic consisting mainly of the island of Taiwan off the SE coast …   Universalium

  • 2011 Wisconsin protests — Part of 2011 United States public employee protests Thousands gather inside Madison Wisconsin s Capitol …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.