4 June 2011

How to monitor your 'execution'

While the executions we have in mind are less blood-curdling than the one you might see in your typical Horror Movie they are of critical importance for you financial well-being. We are talking about how well your orders to deal in shares, bonds or foreign exchange are handled by your broker or financial adviser. Any amount of 'slippage' - even if not due to malice - is a drag on the performance of your portfolio. The more often you turn over your investments the more importance is careful monitoring of execution costs. The lackadaisical regulation of 'dark pools', 'high-frequency trading' and 'predatory algos' have made it more difficult - but even more important - to keep a close watch on executions.