Execution quality is typically measured through several key metrics that assess the efficiency and effectiveness of trade executions. Common metrics include slippage, which refers to the difference between the expected price of a trade and the actual price at which it is executed. Fill rate is another essential metric, indicating the percentage of orders that are successfully executed at the desired price. Additionally, latency measures the time taken to process an order, impacting the overall execution speed. Other factors include the overall cost of trading, which encompasses spreads and commissions, and market impact, reflecting how a trade influences the security's price. Together, these metrics provide a comprehensive picture of execution quality in various markets.
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