can someone please explain this to me this is one to the approaches to reducing execution cost.
futures are liquid. So if you want to quickly gain exposure to a market, you can use futures to get this exposure quickly. However, you have “basis” risk, which is the risk that the behaviour of the future doesn’t match that which you were trying to buy.
Opportunity cost? …shouldn’t it be execution cost.
I mean, yeah execution cost
then should be program trade