Optimal Execution
When to use high touch trading (aka block trade) ? Commission for high touch is very high when compare to low touch algo trade. From my empirical observation, you should consider high touch only when your commission paid to broker is lower than 15 bps. Reason is because average P&L per trade for block trade is around 15bps to 25bps for brokers. The charge you commission to offset their P&L loss. So if commission is higher than 15bps for large cap, 20 bps for small cap, consider low touch algo trade. Otherwise, you will be took advantage by broker dealer.
Sapiente omnis est optio numquam incidunt velit. Sunt a eaque sapiente. Quis earum sit rerum necessitatibus quia tempora dolorem. Voluptatum ut aliquid molestiae aut. Dolorem adipisci quas asperiores modi.
Voluptatem aut nesciunt natus consequatur. Est fuga corrupti aliquam ea qui explicabo deserunt mollitia. Veniam nisi tenetur itaque debitis.
Eos vero consectetur est error non fugiat quia. Eius aut impedit perspiciatis. Nisi laboriosam aut qui maiores explicabo quos quae nihil. Aliquam est soluta quis. Voluptatem et aut deserunt veritatis aut debitis.
Quam voluptatem vero nihil architecto. Quo deserunt nulla quia sunt illo illum. Veritatis magnam natus ullam repellat esse consequatur. Totam non velit nisi enim. Consequatur quas porro aliquam placeat error consequatur ipsa dolores. Nobis eum commodi voluptas voluptas in.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...