CFA Level 3 | Implementation Shortfall (Part 2)

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CFA Level 3
Reading: Trade Strategy and Execution
In this Part 2 video, we will look at the calculation of implementation shortfall for a sale order and its components:
* Execution cost (and it's breakdown, the delay cost and trading cost)
* Opportunity cost
* Fees
For the Part 1 video (Purchase order), check out: • CFA Level 3 | Implemen...

[@dionysus1247]

Your channel is awesome!

[@igrok878]

thank you, helpful

[@ashutoshahuja5602]

Saw an old video regarding Deferred Tax on Capital Gains. See that in the formula you added back the Tax Rate to get the Future value, but everywhere else its just (1+R)^n(1-T) not adding T back. Could you please clarify?

[@darkaeonray8958]

Can you cover the matched and missmatch fx swap section, its really confusing how the contract price are come up with

[@husainismaeel2981]

Thanks, Fabian! In some questions, the order doesn't get filled so the trader places them again the next day. In that case, do we use the Arrival Price of the next day in which the order is placed?

[@FabianMoa]

Hi Husain, in that case, your delay cost and trading cost must reflect the new arrival price (on the next day)

[@husainismaeel2981]

@@FabianMoa Many thanks!