What is Implementation Shortfall?
In the financial world, an implementation shortfall is a term used to describe the disparity between the decision price of a given security and the final execution price associated with the purchase. Sometimes referred to as slippage, this type of shortfall takes into consideration any and all fees associated with the actual process of conducting the trade. The goal of the investor is to minimize the amount of implementation shortfall that takes place, thus keeping the overall cost of acquiring the security as low as possible.
