Trading Costs: Spread, Slippage, and Market Impact foundational

How execution costs arise, why the components are different, and how turnover turns a predictive signal into a net strategy.

How execution costs arise, why the components are different, and how turnover turns a predictive signal into a net strategy.

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References

Continuous Auctions and Insider Trading
Albert S. Kyle (1985) — Econometrica
Extending the Fundamental Law of Investment Management
Danielle Trichilo, Jeffrey L. Braun (2005)
Trading Costs
Andrea Frazzini, Ronen Israel, Tobias J. Moskowitz (2018)
Related Primers
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