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Webster's New World Finance and Investment Dictionary » best execution
best execution
best execution definition - finance
The
best price of a trade that is reasonably available. A broker has a duty to
obtain the best price, called an execution.
When making a trade, a broker must consider opportunities to get a
better price than what is currently quoted, the speed of execution, and the
likelihood that the trade will be executed. In doing so, the broker evaluates
which markets, market makers,
or electronic communications networks (ECNs) offer the most favorable terms of
execution.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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