Transaction Cost Analysis (TCA)

coptic afro-rock, dance, spanish funk · 3:32

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Lyrics

[Verse 1]
When your trades are done and settled down
Numbers tell a story you should know
Every purchase carries hidden costs beyond the price
TCA reveals what doesn't show
Implementation shortfall whispers secrets
VWAP benchmarks paint the trading scene
Market impact fees and timing slippage
Make the difference between gross and clean

[Chorus]
Measure twice, trade once, that's the golden rule
TCA breaks it down, makes you trading-tool
Pre-trade, during trade, post-trade analysis
Cost components split like prisms catching light
VWAP, TWAP, arrival price comparison
TCA teaches traders wrong from right

[Verse 2]
Explicit costs are easy spotting targets
Commissions, taxes, fees that bite direct
But implicit costs lurk in market shadows
Opportunity lost you can't collect
Bid-ask spreads devour trading profits
Delay costs compound when timing's off
Market impact moves against your order
Alpha fades when execution's rough

[Chorus]
Measure twice, trade once, that's the golden rule
TCA breaks it down, makes you trading-tool
Pre-trade, during trade, post-trade analysis
Cost components split like prisms catching light
VWAP, TWAP, arrival price comparison
TCA teaches traders wrong from right

[Bridge]
Attribution tells you where you're bleeding
Venue choice and timing optimization
Algorithm selection saves you money
TCA drives strategic reformation

[Outro]
Track your performance, learn from every trade
TCA transforms how strategies are made
Post-execution microscope reveals
The trading truths that better profit seals

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