Execution metrics
Execution metrics are quantitative measures used to evaluate the efficiency and effectiveness of trade execution processes. Here are some of the most commonly used execution metrics in trading:
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Execution metrics are like the pit crew in a race, fine-tuning every move to ensure smooth, lightning-fast performance that wins the day!
- Slippage: The difference between the expected price of a trade and the actual price.
- Commission Costs: The fees paid to brokers for executing trades.
- Spread Costs: The difference between the bid price and the ask price of an asset.
- Fill Rate: The percentage of orders that are executed successfully.
- Order Execution Time: The time it takes to complete a trade from initiation to completion.