Best Execution

Improve performance by optimizing trade execution

Best execution is the practice of maximizing trade performance for the benefit of a client. The trading lifecycle involved with best execution includes receiving orders, evaluating the market environment, and executing orders. Brokers are legally bound to execute a client’s orders on a best execution basis as mandated by local regulations.

In order to achieve the best execution, brokers must consider factors such as:

  • Market price and sentiment
  • Transaction cost
  • Execution speed
  • Market impact
  • Intraday pattern of transaction volumes

MATLAB®, Trading Toolbox™, and Database Toolbox™ are widely used in applications that plan for best execution.

See also: momentum trading, algorithmic trading, high-frequency trading, concentration risk, value-at-risk

Risk Management with MATLAB

Develop, manage, review, and challenge internal and regulatory models.