Execution costs

Execution costs

The difference between the execution price of a security and the price that would have existed in the absence of a trade, which can be further divided into market impact costs and market timing costs.

Execution Costs

The difference between the market price of a security and what that price would have been had a certain transaction affecting the price not taken place. See also: Market impact cost, market timing cost.
References in periodicals archive ?
However, execution costs cause proportionally larger return variances when measured using short intervals.
And the likely strengthening of best execution will support unbundling, thereby offering a more transparent cost structure and more accurate measurement of execution costs.
Capital adequacy proposals in a new Financial Services Authority (FSA) discussion paper on banks' proprietary trading risks could increase execution costs for their institutional investor clients.
a[umlaut]Hence, the opportunity to reduce execution costs is higher than in other markets.
It is also very hard to get a view on the total volume in the market and what to hold your broker accountable for as its very hard to benchmark your exit rates and execution costs.
To date, most new trading venues launched in Europe have targeted institutional flow only, but Randall believes that retail brokers are increasingly aware of the opportunity to differentiate to clients via lower execution costs.