price impact
[/praɪs ˈɪmpækt/]
nounpl: price impacts
impacto no preço
1. The effect that a large buy or sell order has on the market price of a security or asset, causing the price to move unfavorably for the trader
The trader's large order created a significant price impact, moving the stock price down by 2%.
A grande ordem do trader criou um impacto significativo no preço, movimentando o preço da ação para baixo em 2%.
2. The difference between the execution price of a trade and the price that would have prevailed had the order not been placed
We need to minimize price impact when liquidating this large position.
Precisamos minimizar o impacto no preço ao liquidar esta grande posição.
3. In market microstructure, the temporary and permanent components of price movement caused by an executed trade
The research paper analyzed both temporary and permanent price impact of institutional trades.
O artigo de pesquisa analisou o impacto no preço temporário e permanente de negociações institucionais.
Price impact is a critical concept in modern finance, particularly in Brazil's B3 stock exchange and international markets. With the growth of high-frequency trading and algorithmic trading in Brazil, understanding price impact has become essential for institutional investors and asset managers. The term is primarily used in technical financial contexts rather than in casual conversation.
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