Trade Strategy and Execution
1. Liquidity-seeking algorithms are appropriate for large orders that the portfolio manager or trader would like to execute quickly without having a substantial impact on the security price. Liquidity-seeking algorithms are also used when displaying sizable liquidity via limit orders could lead to unwanted information leakage and adverse security price movement. In these cases, the priority is to minimize information leakage associated with order execution and avoid signaling to the market the trading intentions of the portfolio manager or trader.
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