Hedge fund là gì

Definition: Impact cost is the cost that a buyer or seller of stocks incurs while executing a transaction due to the prevailing liquidity condition on the counter. In other words, it represents the cost of executing a transaction of a given security, with a specific predefined order form size, at any given point in time.

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Description: It is a realistic measure of liquidity of the stoông chồng or security and is deemed lớn be closer khổng lồ the true cost of execution faced by a trader in comparison khổng lồ the bid-ask spread (difference between the best buy & the best sell orders). It is the percentage markup observed while buying or selling a desired quantity of shares with reference lớn its igiảm giá price.The ikhuyến mãi price can be illustrated by an example.Suppose a buyer wants to lớn purchase 3,000 shares of, say, ABC. If the best buy order for 1,000 shares is placed at Rs 237 & the best sell order for 1,500 shares is placed at Rs 239, the ideal price for the khuyến mãi should be:(239+237)/2 = Rs 238At this price, one can expect the buyer khổng lồ ideally get the desired quantity of ABC shares.
But suppose that the buyer was able khổng lồ buy 3,000 ABC shares at an average cost of Rs 239.67 (see the above table) Average cost: <(1500x 239) + (1000 x 240) + (500 x 241)>/3000 Or (3,58,500+ 2,40,000+ 1,20,500)/3000 = 239.83The impact cost, therefore, would be 0.70 per cent.

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To find the impact cost, the formula is:(Actual cost - ikhuyễn mãi giảm giá cost)/igiảm giá cost*100 (#)In our example, the ikhuyễn mãi giảm giá price is Rs 238, but the average acquisition price for that buyer is Rs 239.67.By formula (#), the impact cost should thus be: (239.67 - 238)/239.67*100 = 0.70This is a cost that the buyers incur due lớn laông xã of market liquidity. The importance of impact cost can be judged from the fact that it is one of the criteria khổng lồ select a stoông chồng for inclusion in the NSE’s benchmark index Nifty50.For a stochồng lớn qualify for possible inclusion into lớn Nifty50, it has to lớn have sầu traded at an average impact cost of 0.50 per cent or less during the last six months for 90 per cent of the observations for a basket kích thước of Rs 2 crore.It must be note that impact cost does vary for different transaction sizes. It is dynamic in nature và depends on the outstanding orders. Lastly, a penal impact cost is applicable if a stoông chồng is not sufficiently liquid.
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