[Verse 1] When you place a trade upon the market floor Your order moves the price from where it was before Buy a thousand shares and watch the price climb high Sell them all at once and see the numbers fly [Chorus] Market impact hits when volumes start to grow Temporary shocks will come and then they'll go But permanent effects will make the new price stick Time is money when you trade, so make it quick [Verse 2] Sarah needs to sell her million-dollar stake If she dumps it all, the stock price she'll break Temporary impact pushes prices down But smart money waits to buy when she's around [Chorus] Market impact hits when volumes start to grow Temporary shocks will come and then they'll go But permanent effects will make the new price stick Time is money when you trade, so make it quick [Bridge] Timing costs you money every single day Delay your execution and you'll have to pay Information leakage shows your trading hand Break up large orders, that's the wise command [Verse 3] Liquidity providers keep the markets tight But large trades will test them with their trading might Bid-ask spreads will widen when the pressure's on Wait too long to trade and profits might be gone [Chorus] Market impact hits when volumes start to grow Temporary shocks will come and then they'll go But permanent effects will make the new price stick Time is money when you trade, so make it quick [Outro] Plan your trading strategy with impact in mind Balance speed and stealth, leave no alpha behind Temporary, permanent, timing costs all matter In the world of trading, prices always scatter
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