Implementation Shortfall vs Market Impact

Quick comparison to help you distinguish these two crypto terms.

Implementation Shortfall
intermediate
strategy

Total cost differential between a trade's decision price and actual execution price, measuring the full impact of execution timing, market movement, and market impact combined.

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Market Impact
intermediate
market_structure

Market impact is the degree to which a trader's own order moves the asset's price against them during execution, caused by consuming available liquidity in the order book.

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