
Explanation:
Slippage is defined as the deterioration in the market price induced by the amount of time it takes to get a trade done. It reflects the implicit costs faced when dealing with less liquid markets.
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512.3. Lack of liquidity manifests itself in observable, yet hard-to-measure ways. Which of the following refers to "the deterioration in the market price induced by the amount of time it takes to get a trade done?"
A
Tightness
B
Bid-ask spread
C
Adverse price impact
D
Slippage