Execution Strategies

Implementation Shortfall

Implementation Shortfall (IS) indicates the difference between the price at which trader wants to execute order versus the average traded price that is actually achieved. The reference price provided by trader is used as a benchmark. In case the reference price is not...

Target Close (Day)

The Target Close strategy tries to copy a Market-On-Close (MOC) order, for exchanges which do not allow such order types. At NYSE and NASDAQ, a MOC order should be submitted by 3:45 pm and 3:50 pm respectively and is executed at market close time (4 pm). The MOC trade...

Percentage of Volume

The Percentage of Volume (POV), also called as Participation Rate, is a simple strategy which executes the order quantity as percentage of trade volume of the stock in a given time interval. Example: “Be 10% of volume”- Buy 100,000 shares at %Volume of 10...

Time Weighted Average Price (TWAP)

Time Weighted Average Price (TWAP) is an execution strategy which trades in slices of Order Quantity at regular intervals of time as specified by user. While executing, it adds randomization as per an algorithm to minimize gaming risk. The actual algorithm to achieve...

Volume Weighted Average Price (VWAP)

Volume Weighted Average Price (VWAP) is an execution strategy which analyzes stock specific historical volume profile (no. of shares traded at particular price), and trades in slices of Order Quantity with objective to keep the average traded price close to the VWAP....