Why Unfilled Orders Change Execution Cost
Summary
Hollow Point Trading shares an educational breakdown of how unfilled orders affect implementation shortfall. In a hypothetical 100-share buy at a $10 decision price, only 60 shares fill at $10.10 while the end valuation reaches $11, showing why measuring filled shares alone can miss execution costs.
https://youtu.be/7L-09SF62r8
An unfilled order can change measured execution cost #Implementatio...
Looking only at filled shares can miss part of implementation shortfall. Suppose a hypothetical decision is to buy one hundred shares at a ten dollar decision price. Assume all one hundred were reasonably executable. Only sixty fill, at ten dollars ten cents. The chosen end valuation is eleven dollars. Ignore fees and cash interest. The paper po...
