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:
See also: Financial Instruments Toolbox, Spreadsheet Link, Statistics and Machine Learning Toolbox, Financial Toolbox, Datafeed Toolbox, MATLAB, Econometrics Toolbox, Database Toolbox, Trading Toolbox, momentum trading, algorithmic trading, high-frequency trading, concentration risk, value-at-risk
Develop, manage, review, and challenge internal and regulatory models.