Market Impact and Timing Effects

pop synthpop, tuareg synthwave · 4:08

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Lyrics

[Verse 1]
When traders splash into the market pool
Big orders ripple, that's the golden rule
Prices bend and shift beneath the weight
Every buy and sell seals someone's fate
Temporary impact hits you first
Like a stone that makes the water burst

[Chorus]
T-I-M-E costs money when you wait
Permanent impact changes market fate
Temporary shocks will fade away
But permanent shifts are here to stay
Market impact, timing's cruel dance
Every second steals your performance chance

[Verse 2]
Block trades crash like elephants through glass
Information leaks as minutes pass
Slippage grows with every tick that crawls
Price discovery echoes through the halls
Smart money watches, vultures circle round
Your trading secrets make an expensive sound

[Chorus]
T-I-M-E costs money when you wait
Permanent impact changes market fate
Temporary shocks will fade away
But permanent shifts are here to stay
Market impact, timing's cruel dance
Every second steals your performance chance

[Bridge]
Implementation shortfall grows and grows
Between decision price and where it goes
VWAP becomes your benchmark friend
But crossing spreads will make you bend
Algorithmic slicing helps you hide
Breaking orders keeps costs on your side

[Verse 3]
Market depth reveals how much you'll pay
Liquidity determines if you'll sway
Institutional flows move mountains high
While retail trades barely catch the eye
Price improvement fades as size expands
Execution art demands steady hands

[Chorus]
T-I-M-E costs money when you wait
Permanent impact changes market fate
Temporary shocks will fade away
But permanent shifts are here to stay
Market impact, timing's cruel dance
Every second steals your performance chance

[Outro]
Trade with wisdom, split your size
Monitor the market's watchful eyes
Impact measurement tells the tale
Of whether your strategy will prevail

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