Examining Transaction Costs in LME Metals

How does execution strategy influence transaction costs in the LME metals market?

This research examines the risk–reward trade-offs of different execution methods across the six major LME metals, using midprice at entry as a benchmark. We explore whether increasing passivity in execution can improve transaction costs relative to market orders, and how these effects vary across metals. The analysis also considers how spread characteristics and execution reference points shape cost and risk outcomes.