Transaction Costs Analysis

Transaction Costs Analysis (TCA) is a method used to evaluate the costs associated with trading securities beyond just the price of the asset. These costs include fees, commissions, and the impact of market movements caused by trading itself. By analyzing these costs, investors can assess the efficiency of their trading strategies and make informed decisions to minimize expenses. Essentially, TCA helps identify how much it truly costs to buy or sell an asset, allowing for better overall investment performance.