Market Impact - Assignment Point
Market Impact
Subject: Finance | Topics:

Market Impact is a key consideration that needs to be considered before any decision to move money within or between financial markets. It is the effect that a market participant has when it buys or sells an asset. It is closely related to market liquidity; in many cases “liquidity” and “market impact” are synonymous. The financial institution that is seeking to manage its market impact needs to limit the pace of its activity so as to avoid disrupting the price.

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