Free Site Registration

Evaluating the Process

Traders Magazine, March 2001

Marie S. Konstance

It is taken for granted that the quality of trading can influence investment returns. So where does the trader fit in and ensure he adds value? To answer this question, traders are using tools that can provide them timely feedback. These tools compare their trades to an accepted benchmark.

For example, decision price, the price that prevailed during the portfolio manager's stock selection, or when the order reached the trader's desk, is a good proxy for the price the portfolio manager is trying to achieve. It can be adjusted by an expectational cost, so the trader can compare trades with varying liquidity characteristics.

Get access to this article and thousands more...

All articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.

Already Registered?