Trade Execution

Definition ∞ Trade execution refers to the process of completing a buy or sell order for a digital asset on an exchange or trading platform. This involves matching a buyer with a seller at an agreed-upon price. Efficient trade execution is critical for market liquidity and for investors to achieve their desired transaction outcomes. Factors like order book depth, latency, and slippage significantly affect the quality of trade execution.
Context ∞ News reports often analyze trade execution efficiency and its impact on market participants, especially during periods of high volatility. Discussions frequently involve the technology employed by exchanges to handle large volumes and ensure fair pricing. The development of advanced trading algorithms and infrastructure continues to improve the speed and reliability of trade execution in digital asset markets.