# How Transaction Cost Analysis Reveals Your True Trading Alpha ▴ Guide

**Published:** 2025-08-17
**Categories:** Guide

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![A precision-engineered component, like an RFQ protocol engine, displays a reflective blade and numerical data. It symbolizes high-fidelity execution within market microstructure, driving price discovery, capital efficiency, and algorithmic trading for institutional Digital Asset Derivatives on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-engine-core-for-institutional-digital-asset-derivatives-rfq-protocol-price-discovery.jpg)

![A metallic structural component interlocks with two black, dome-shaped modules, each displaying a green data indicator. This signifies a dynamic RFQ protocol within an institutional Prime RFQ, enabling high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/modular-rfq-protocol-engine-for-digital-asset-derivatives-prime-os.jpg)

## The Anatomy of Realized Alpha

[Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA) provides the rigorous, quantitative framework for understanding your true performance. It moves the measurement of success from the theoretical realm of paper trading to the complex reality of market execution. At its core, TCA is a diagnostic discipline that deconstructs a trade’s life cycle to reveal the sources of cost and value leakage that occur between an investment decision and its final settlement.

Professional traders view TCA as an essential system for performance engineering, offering a granular view of execution quality that goes far beyond gross profit and loss calculations. It quantifies the friction inherent in translating an idea into a filled order, exposing the hidden costs that erode returns and obscure a strategy’s genuine effectiveness.

The central concept in this analysis is [Implementation Shortfall](https://prime.greeks.live/area/implementation-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a term first articulated by Andre Perold in 1988. This metric represents the total cost of execution by measuring the difference in value between a hypothetical paper portfolio, where trades are filled instantly at the decision price, and the actual portfolio’s value after the trade is completed. This “shortfall” is the most honest appraisal of trading efficacy because it captures the full spectrum of execution costs, including explicit commissions and the more elusive implicit costs.

Implicit costs are the economic consequences of a trade’s interaction with the market, manifesting as [market impact](https://prime.greeks.live/question/how-does-the-system-differentiate-between-market-impact-caused-by-the-rfq-and-unrelated-market-volatility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), timing risk, and [opportunity cost](https://prime.greeks.live/area/opportunity-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Understanding these components is the first step toward managing them.

Market impact is the price movement directly attributable to your own trading activity. Large orders, particularly in less liquid markets, can exhaust available liquidity at the best prices, forcing subsequent fills at less favorable levels and creating a permanent or temporary shift in the prevailing price. Timing risk, or [slippage](https://prime.greeks.live/area/slippage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), refers to the cost incurred from adverse price movements in the market during the execution window. This is the penalty for delay, the market moving against you while you work an order.

Finally, opportunity cost is the most subtle yet powerful component of the shortfall; it measures the financial consequence of failing to execute a portion or all of an intended order. A trader who hesitates or is unable to find sufficient liquidity may avoid market impact but incurs a steep opportunity cost if the asset’s price moves significantly in the expected direction. TCA brings this powerful, often unmeasured, cost into the light. It forces a holistic evaluation of every trading decision, creating a feedback loop for continuous strategic refinement.

![A deconstructed mechanical system with segmented components, revealing intricate gears and polished shafts, symbolizing the transparent, modular architecture of an institutional digital asset derivatives trading platform. This illustrates multi-leg spread execution, RFQ protocols, and atomic settlement processes](https://options.greeks.live/wp-content/uploads/2025/07/deconstructed-principal-trading-system-revealing-core-mechanics-of-digital-asset-derivatives-execution.jpg)

![A sophisticated digital asset derivatives trading mechanism features a central processing hub with luminous blue accents, symbolizing an intelligence layer driving high fidelity execution. Transparent circular elements represent dynamic liquidity pools and a complex volatility surface, revealing market microstructure and atomic settlement via an advanced RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-framework-optimizing-market-microstructure-price-discovery-intelligence-layer.jpg)

## The Execution Engineer’s Doctrine

Applying [Transaction Cost](https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Analysis transforms a trader from a passive participant into a proactive execution engineer. The data derived from TCA is not a historical record; it is a live, actionable input for refining strategy and making superior tactical decisions. This process begins with establishing precise, relevant benchmarks to measure performance against. While common benchmarks like Volume Weighted Average Price ([VWAP](https://prime.greeks.live/area/vwap/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) have their place, they can be misleading as they are influenced by the very trade being measured.

A large buy order, for instance, will naturally push the VWAP higher, making the execution appear more effective than it was. The professional standard, Implementation Shortfall, uses the undisturbed price at the moment of the trading decision as its anchor, providing an uncompromised measure of total cost.

> The Implementation Shortfall methodology can account for the entire spectrum of execution variables, including the often-overlooked opportunity costs associated with unfilled orders or delayed execution.

![A sophisticated metallic mechanism with integrated translucent teal pathways on a dark background. This abstract visualizes the intricate market microstructure of an institutional digital asset derivatives platform, specifically the RFQ engine facilitating private quotation and block trade execution](https://options.greeks.live/wp-content/uploads/2025/07/systemic-framework-for-institutional-digital-asset-derivatives-rfq-price-discovery-and-atomic-settlement.jpg)

## Calibrating Your Execution Benchmarks

The practical application of TCA involves segmenting the Implementation Shortfall into its constituent parts to diagnose specific weaknesses in the execution process. A disciplined analysis isolates the different cost drivers, allowing for targeted improvements. The objective is to build a detailed map of your trading costs, identifying which factors are causing the most significant performance drag. This analytical rigor is the foundation of institutional-grade trading.

- **Decision Price to Execution Price** This is the primary calculation of slippage. It measures the difference between the market price when the decision to trade was made and the final average execution price for the filled portion of the order. This reveals the combined effect of market timing and the initial [price impact](https://prime.greeks.live/area/price-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of your orders.

- **Market Impact Analysis** To isolate the impact of your trade, you can compare the execution price against a benchmark that reflects the general market movement during the trading period. For instance, if you are buying and the broader market is also rising, a portion of your slippage is due to market drift. The remainder is more likely your own footprint. Post-trade analysis, observing if the price reverts after your execution is complete, can also help quantify the temporary impact your order created.

- **Opportunity Cost Calculation** This is measured by the difference between the decision price and the market price at the end of the trading horizon for any portion of the order that was not filled. This metric is vital for strategies where capturing the full size of a position is paramount. It forces an evaluation of the trade-off between patience, which might reduce market impact, and urgency, which minimizes opportunity cost.

- **Explicit Cost Accounting** While implicit costs are more complex, explicit costs like commissions and fees must be meticulously tracked. These are the most straightforward to control and can have a significant cumulative effect on net performance. Every basis point saved contributes directly to realized alpha.

![A crystalline droplet, representing a block trade or liquidity pool, rests precisely on an advanced Crypto Derivatives OS platform. Its internal shimmering particles signify aggregated order flow and implied volatility data, demonstrating high-fidelity execution and capital efficiency within market microstructure, facilitating private quotation via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-protocol-best-execution.jpg)

## Controlling Impact in Block Trading through RFQ

For institutional traders and those dealing in significant size, managing the price impact of block trades is a primary concern. Executing a large order directly on a public exchange order book can signal your intent to the market, triggering adverse price movements as other participants trade ahead of or against your flow. This is where Request for Quote ([RFQ](https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)) systems become an indispensable tool for minimizing Implementation Shortfall. An RFQ mechanism allows a trader to privately request quotes for a specific instrument and size from a network of professional market makers or liquidity providers.

This process fundamentally alters the execution dynamic. Instead of displaying a large order that consumes liquidity, you are discreetly accessing competitive liquidity. Market makers respond with firm, two-sided prices, creating a competitive auction for your order. This has several direct benefits for cost reduction.

First, it minimizes information leakage, preventing the market from reacting to your trade before it is complete. Second, it reduces market impact because the trade is negotiated and often settled off the central limit order book. The price you receive is a firm quote for the entire block, eliminating the risk of slippage as you work the order piece by piece.

![Abstract geometric forms in muted beige, grey, and teal represent the intricate market microstructure of institutional digital asset derivatives. Sharp angles and depth symbolize high-fidelity execution and price discovery within RFQ protocols, highlighting capital efficiency and real-time risk management for multi-leg spreads on a Prime RFQ platform](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-optimized-rfq-execution-for-digital-asset-derivatives.jpg)

## The RFQ Advantage in Specialized Markets

In markets like crypto options and other derivatives, where liquidity can be fragmented and spreads on public exchanges can be wide, RFQ systems offer a pronounced advantage. They are particularly effective for complex, multi-leg strategies. Executing a multi-leg options spread as a single package through an RFQ eliminates “leg risk” ▴ the danger that the price of one leg of the spread will move against you while you are trying to execute another. You receive a single price for the entire package, ensuring precise execution of the strategy at a known cost.

This is a critical component of professional risk management and a direct way to control a key variable within your TCA framework. Platforms that specialize in this, such as Greeks.live’s RFQ system, provide institutional-grade infrastructure to traders, allowing them to command liquidity on their own terms and systematically reduce the costs that TCA is designed to measure.

![A sleek metallic device with a central translucent sphere and dual sharp probes. This symbolizes an institutional-grade intelligence layer, driving high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-precision.jpg)

![Two dark, circular, precision-engineered components, stacked and reflecting, symbolize a Principal's Operational Framework. This layered architecture facilitates High-Fidelity Execution for Block Trades via RFQ Protocols, ensuring Atomic Settlement and Capital Efficiency within Market Microstructure for Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-prime-os-execution-protocol.jpg)

## The Alpha Compounding System

Mastering Transaction [Cost Analysis](https://prime.greeks.live/area/cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) elevates a trader’s focus from individual trades to a holistic, self-correcting performance system. The insights gleaned from rigorous TCA are not merely for review; they are the critical data that fuels the continuous improvement of your entire trading operation. This is where execution strategy and portfolio management converge.

The TCA feedback loop becomes a mechanism for compounding alpha over time, refining both the “what” and the “how” of your investment process. By understanding the precise costs associated with different strategies, market conditions, and order types, you can build a more robust and efficient portfolio that systematically preserves returns that would otherwise be lost to execution friction.

This advanced application of TCA involves integrating its findings directly into the design and deployment of [algorithmic trading](https://prime.greeks.live/area/algorithmic-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) strategies. An execution algorithm is only as effective as the assumptions it is built upon. TCA data provides the empirical evidence needed to challenge and refine those assumptions. For example, if your post-trade analysis consistently reveals high market impact costs during the first hour of trading, you can adjust your algorithms to be more passive during that period or to break up orders into smaller, less conspicuous child orders.

Conversely, if opportunity costs are the primary drag on a particular strategy, the algorithm can be calibrated to be more aggressive, seeking liquidity at a faster pace to ensure a higher fill rate. This data-driven approach turns execution from a standardized process into a bespoke system tailored to your specific alpha profile and risk tolerance.

![Visualizes the core mechanism of an institutional-grade RFQ protocol engine, highlighting its market microstructure precision. Metallic components suggest high-fidelity execution for digital asset derivatives, enabling private quotation and block trade processing](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-core-1.jpg)

## The Behavioral Diagnostic Tool

One of the most profound applications of TCA is in the realm of behavioral finance. Your trading cost signature is an objective mirror reflecting your decision-making biases and ingrained habits. Consistent patterns of high timing costs, for example, might reveal a tendency to hesitate or a reluctance to cross the spread, even when market conditions warrant aggression.

A pattern of high market impact might indicate impatience or an overestimation of available liquidity. By analyzing these patterns, TCA moves beyond a simple cost metric to become a powerful tool for behavioral modification.

This level of analysis requires correlating cost data with the context of the trade. Consider these questions during your review:

- Do my costs increase when trading certain asset classes or instruments? This may point to a lack of specialized market structure knowledge.

- Are my costs higher during periods of high market volatility? This could indicate a reactive, rather than proactive, approach to risk.

- Does the performance of my execution vary significantly between winning and losing trades? This might uncover a bias, such as a tendency to be impatient when taking profits but overly patient when cutting losses, incurring unnecessary costs in the process.

Answering these questions with data transforms abstract behavioral concepts into quantifiable metrics. It creates a direct link between your psychological patterns and your bottom line. Addressing these behaviors, informed by the objective data from your TCA reports, is one of the final frontiers of performance optimization. It allows a trader to engineer not just their execution strategy, but also their own decision-making framework, creating a durable and resilient edge.

![A central luminous, teal-ringed aperture anchors this abstract, symmetrical composition, symbolizing an Institutional Grade Prime RFQ Intelligence Layer for Digital Asset Derivatives. Overlapping transparent planes signify intricate Market Microstructure and Liquidity Aggregation, facilitating High-Fidelity Execution via Automated RFQ protocols for optimal Price Discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer.jpg)

## The Final Basis Point

The pursuit of alpha is a relentless endeavor. It exists at the margins, in the incremental gains extracted through superior strategy, discipline, and execution. Transaction Cost Analysis is the discipline of the margins. It is the understanding that true performance is not what you make, but what you keep.

Mastering this analysis is the commitment to the idea that every basis point matters, because within those basis points lies the difference between fleeting luck and sustainable, professional success. It is the final, non-negotiable element in the construction of a truly sophisticated trading enterprise.

![A sophisticated proprietary system module featuring precision-engineered components, symbolizing an institutional-grade Prime RFQ for digital asset derivatives. Its intricate design represents market microstructure analysis, RFQ protocol integration, and high-fidelity execution capabilities, optimizing liquidity aggregation and price discovery for block trades within a multi-leg spread environment](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-proprietary-architecture-driving-high-fidelity-digital-asset-derivatives-execution-via-rfq-protocols-and-optimized-market-microstructure-dynamics.jpg)

## Glossary

<a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two distinct ovular components, beige and teal, slightly separated, reveal intricate internal gears. This visualizes an Institutional Digital Asset Derivatives engine, emphasizing automated RFQ execution, complex market microstructure, and high-fidelity execution within a Principal's Prime RFQ for optimal price discovery and block trade capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-automated-rfq-execution-microstructure-revealing-principal-prime-os-intelligence-layer-for-high-fidelity-execution-and-capital-efficiency.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA) is the quantitative methodology for assessing the explicit and implicit costs incurred during the execution of financial trades. </a><a href="https://prime.greeks.live/area/implementation-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A complex, reflective apparatus with concentric rings and metallic arms supporting two distinct spheres. This embodies RFQ protocols, market microstructure, and high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-3.jpg)

## Implementation Shortfall

Meaning ▴ Implementation Shortfall quantifies the total cost incurred from the moment a trading decision is made to the final execution of the order. </a><a href="https://prime.greeks.live/area/opportunity-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two diagonal cylindrical elements. The smooth upper mint-green pipe signifies optimized RFQ protocols and private quotation streams](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-optimization-1.jpg)

## Opportunity Cost

Meaning ▴ Opportunity cost defines the value of the next best alternative foregone when a specific decision or resource allocation is made. </a><a href="https://prime.greeks.live/question/how-does-the-system-differentiate-between-market-impact-caused-by-the-rfq-and-unrelated-market-volatility/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract planes illustrate RFQ protocol execution for multi-leg spreads. A dynamic teal element signifies high-fidelity execution and smart order routing, optimizing price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimization.jpg)

## Market Impact

A system isolates RFQ impact by modeling a counterfactual price and attributing any residual deviation to the RFQ event. </a><a href="https://prime.greeks.live/area/slippage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished, dark teal institutional-grade mechanism reveals an internal beige interface, precisely deploying a metallic, arrow-etched component. This signifies high-fidelity execution within an RFQ protocol, enabling atomic settlement and optimized price discovery for institutional digital asset derivatives and multi-leg spreads, ensuring minimal slippage and robust capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/quantitative-finance-driven-rfq-workflow-for-best-execution-in-digital-assets.jpg)

## Slippage

Meaning ▴ Slippage denotes the variance between an order's expected execution price and its actual execution price. </a><a href="https://prime.greeks.live/area/transaction-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, white, semi-spherical Principal's operational framework opens to precise internal FIX Protocol components. A luminous, reflective blue sphere embodies an institutional-grade digital asset derivative, symbolizing optimal price discovery and a robust liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-5.jpg)

## Transaction Cost

Meaning ▴ Transaction Cost represents the total quantifiable economic friction incurred during the execution of a trade, encompassing both explicit costs such as commissions, exchange fees, and clearing charges, alongside implicit costs like market impact, slippage, and opportunity cost. </a><a href="https://prime.greeks.live/area/vwap/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Three metallic, circular mechanisms represent a calibrated system for institutional-grade digital asset derivatives trading. The central dial signifies price discovery and algorithmic precision within RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-and-execution-precision.jpg)

## Vwap

Meaning ▴ VWAP, or Volume-Weighted Average Price, is a transaction cost analysis benchmark representing the average price of a security over a specified time horizon, weighted by the volume traded at each price point. </a><a href="https://prime.greeks.live/area/price-impact/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Translucent teal glass pyramid and flat pane, geometrically aligned on a dark base, symbolize market microstructure and price discovery within RFQ protocols for institutional digital asset derivatives. This visualizes multi-leg spread construction, high-fidelity execution via a Principal's operational framework, ensuring atomic settlement for latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/transparent-geometric-structures-visualizing-multi-leg-spread-rfq-protocols-for-high-fidelity-institutional-digital-asset-derivatives-execution.jpg)

## Price Impact

Meaning ▴ Price Impact refers to the measurable change in an asset's market price directly attributable to the execution of a trade order, particularly when the order size is significant relative to available market liquidity. </a><a href="https://prime.greeks.live/area/rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, reflective surface features a segmented circular mechanism, reminiscent of an RFQ aggregation engine or liquidity pool. Specks suggest market microstructure dynamics or data latency](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-options-rfq-execution-microstructure-prime-os.jpg)

## Rfq

Meaning ▴ Request for Quote (RFQ) is a structured communication protocol enabling a market participant to solicit executable price quotations for a specific instrument and quantity from a selected group of liquidity providers. </a><a href="https://prime.greeks.live/area/cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A complex, multi-faceted crystalline object rests on a dark, reflective base against a black background. This abstract visual represents the intricate market microstructure of institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-execution-architecture.jpg)

## Cost Analysis

Meaning ▴ Cost Analysis constitutes the systematic quantification and evaluation of all explicit and implicit expenditures incurred during a financial operation, particularly within the context of institutional digital asset derivatives trading. </a><a href="https://prime.greeks.live/area/algorithmic-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intricate metallic components signify system precision engineering. These structured elements symbolize institutional-grade infrastructure for high-fidelity execution of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-engineering-for-high-fidelity-execution-and-latency-optimization.jpg)

## Algorithmic Trading

Meaning ▴ Algorithmic trading is the automated execution of financial orders using predefined computational rules and logic, typically designed to capitalize on market inefficiencies, manage large order flow, or achieve specific execution objectives with minimal market impact. </a>

**Tags:** [Implementation Shortfall](https://options.greeks.live/area/implementation-shortfall/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Transaction Cost Analysis](https://options.greeks.live/area/transaction-cost-analysis/), [Algorithmic Trading](https://options.greeks.live/area/algorithmic-trading/), [Opportunity Cost](https://options.greeks.live/area/opportunity-cost/), [Block Trading](https://options.greeks.live/area/block-trading/)	

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Smart Trading provides a systemic framework to optimize execution across fragmented liquidity, minimizing cost and impact in uncertain markets.

- 
### [What Are the Key Differences in Proving Best Execution for RFQs versus Lit Order Books?](https://options.greeks.live/question/what-are-the-key-differences-in-proving-best-execution-for-rfqs-versus-lit-order-books/)
![Visualizing institutional digital asset derivatives market microstructure. A central RFQ protocol engine facilitates high-fidelity execution across diverse liquidity pools, enabling precise price discovery for multi-leg spreads. The connecting element signifies smart order routing for atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-across-multi-asset-liquidity.jpg)

Proving best execution shifts from measuring against a continuous public record in lit markets to justifying a discrete, private auction process in RFQs.

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---

**Original URL:** https://options.greeks.live/guide/how-transaction-cost-analysis-reveals-your-true-trading-alpha/
