51sec snip

Acquired cover image

Renaissance Technologies

Acquired

NOTE

Real Transaction Costs and Slippage in Trading Business Models

Real transaction costs exist in trading before the advent of innovative models like pay for order flow and zero transaction fees. Initiating trades can impact the market, leading to slippage and practical considerations like being front run by others. Trading at scale can result in moving the market due to slippage, acting as a limiting factor for high-velocity trading in the evolving quant industry.

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