Option Trading

Order Strategy Design
Execution Planning: Institutions cannot place large orders directly; they split trades into smaller lots to avoid price impact.

Techniques:

Algorithmic Trading (TWAP, VWAP, Iceberg orders)

Dark Pool Execution

Block Trades via Brokers

Trade Execution

Methods: Trades are routed through brokers, electronic communication networks (ECNs), or proprietary trading desks.

Real-Time Monitoring: Institutions monitor slippage, transaction costs, and market reaction continuously.