Execution mechanics: from intended orders to actual fills

Work through quantity rounding, maker queues, partial IOC exits, trigger sources and implementation shortfall with original ledgers and reconciled calculations.

Course outline

1. 1

   Round an executable quantity without increasing the risk budget

   Check quantity steps, price ticks and minimum notional against a fixed risk budget. Learn when rounding produces no feasible order.

   6 min
2. 2

   Reconstruct a maker queue before assuming a fill

   Reconstruct a FIFO queue from an explicit event ledger. Distinguish a trade at your price from your own execution and bound unknown cancellations.

   6 min
3. 3

   Reconcile an IOC partial fill and the exposure it leaves behind

   Calculate an IOC exit's average fill, fees and remaining exposure. A cancelled remainder does not mean the original position is closed.

   6 min
4. 4

   Align a stop trigger with the price series that actually activates it

   Compare last-trade, mark and index triggers on one timeline. Separate activation from execution and identify the limits of candle-based evidence.

   6 min
5. 5

   Measure implementation shortfall against a declared decision benchmark

   Account for executed-price differences, fees and unfilled opportunity cost. Reconcile decision and arrival benchmarks without double-counting delay.

   6 min

Open full-size diagram

1. Round an executable quantity without increasing the risk budget
2. Reconstruct a maker queue before assuming a fill
3. Reconcile an IOC partial fill and the exposure it leaves behind
4. Align a stop trigger with the price series that actually activates it
5. Measure implementation shortfall against a declared decision benchmark

Educational material. Examples do not establish a profitable strategy. Trading costs, gaps and liquidation can produce losses beyond a planned stop.