PC 11.1: Explicit and Implicit Trading Costs
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Last updated 2:49 AM on 1/15/26
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4 Terms
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examples of implicit trading costs:
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define the following:
Best bid:
Best ask:
Inside spread:
Midquote:
Limit order book:
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What is the effective spread used for?
to evaluate the quality of execution
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effective spread =
Note 
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