Implementation Shortfall

See: Slippage. Same thing.

The shortfall in implementing a trade comes from the friction laden on top of it of all of the transaction costs that came from doing the trade in the first place. Regulatory forms that had to be filled out and paid for; commissions that had to be paid; lawyer fees that were needed to review contracts. Had all of these frictions not been factors, the trade could have been implemented...but because they were required, they were essentially a deadweight loss on what should have been a frictionless, seamless transaction.