MetricPro
Transaction Cost Analysis (TCA)
syn. TCA
A post-trade analytical process that measures total execution costs including spread, slippage, market impact, and timing costs to evaluate execution quality.
Last updated: February 10, 2026
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After trades are executed, TCA systems collect all execution data.
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Each trade is compared against benchmarks: VWAP, arrival price, close price.
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Costs are decomposed: explicit (commission, fees) and implicit (spread, slippage, market impact).
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The analysis identifies patterns in execution quality across brokers, venues, and time periods.
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Reports are generated for compliance, optimization, and broker evaluation.