CFA Level III: Trading and Market Microstructure

10 chapters

Chapters

1. Trading Costs and Their Components
   CFA Level III: Trading and Market Microstructure · 3:41
   A deep dive into the true cost of executing trades, Trading Costs and Their Components breaks down both the visible and hidden expenses investors face when buying or selling securities, equipping listeners with the knowledge to identify and account for every layer of transaction cost.
2. Market Microstructure Basics
   CFA Level III: Trading and Market Microstructure · 3:49
   Dive into the hidden mechanics that power every financial trade, exploring how dealers, market makers, and retail traders interact within the complex systems that drive modern markets.
3. Managing Concentrated Positions
   CFA Level III: Trading and Market Microstructure · 5:53
   Dive into the risks and remedies of concentrated equity positions, exploring powerful strategies like exchange funds, protective collars, and completion portfolios that help investors diversify wealth without triggering unnecessary tax consequences.
4. Implementation Shortfall Framework
   CFA Level III: Trading and Market Microstructure · 3:46
   Dive into the critical concept of implementation shortfall, the gap between paper portfolio returns and real-world results, and learn how to measure and understand where expected performance gets lost in the execution process.
5. Market Impact and Timing Effects
   CFA Level III: Trading and Market Microstructure · 4:03
   Exploring how trade size and timing influence price movement, this chapter breaks down the mechanics of market impact, teaching you to recognize when your own orders shift prices and how to distinguish between temporary and permanent market disruptions.
6. VWAP and TWAP Strategies
   CFA Level III: Trading and Market Microstructure · 4:04
   Explore two of the most widely used execution benchmarks in institutional trading — VWAP and TWAP — and learn how traders use these volume- and time-weighted strategies to minimize market impact and evaluate the quality of their trade execution.
7. Algorithmic Trading Fundamentals
   CFA Level III: Trading and Market Microstructure · 3:25
   Algorithmic trading comes to life through an exploration of how automated systems execute orders at speeds beyond human capability, covering essential execution strategies like VWAP and TWAP that help traders optimize performance in fast-moving markets.
8. Dark Pools and Hidden Liquidity
   CFA Level III: Trading and Market Microstructure · 3:43
   Dive into the shadowy world of dark pools and hidden liquidity, exploring how institutional investors execute large trades away from public markets to minimize price impact and information leakage.
9. Transaction Cost Analysis (TCA)
   CFA Level III: Trading and Market Microstructure · 3:41
   Diving into Transaction Cost Analysis (TCA), this chapter examines how traders evaluate execution quality after a trade is completed, exploring whether the price achieved matched expectations or whether hidden costs eroded returns.
10. Best Execution Obligations
    CFA Level III: Trading and Market Microstructure · 4:26
    Diving into the critical fiduciary duty of best execution, this track breaks down how traders must balance price, speed, costs, and market impact to achieve optimal outcomes for their clients across every trade.