UNIT 2
Orders & Execution
Every order trades price certainty against execution certainty.
PrioritySpeedPrice
How an intended trade can differ from the price actually received.
- Choosing order types
- Reviewing high-turnover strategies
- Limit orders can miss
- Stops can gap past their trigger
Assuming every backtest trade fills at the displayed price.
Observed implementation shortfall often grows with volatility, urgency, and trade size.
60-SECOND CHEAT SHEET
Remember this.
- 1Market = speed
- 2Limit = price control
- 3Thin book = more slippage