Trading vs arrival costs

CFA Level III Portfolio Management
#1

Hello forum,
A simple doubt: are trading costs = arrival costs? If not the case what is the difference?

#2

Arrival cost means trading cost specifically when the execution price is compared to the arrival price.

1 Like
#3

Thank you for the reply

#4

My pleasure.

#5

So they’re the same thing in terms of equation right? That’s what I have on flashcard at least.

#6

Yes, if it is VWAP cost
= (Price - VWAP price)/VWAP price