bchadwick

Whenever you have to use Price Benchmark remember these formulas to calculate Total Transaction cost.
1) For sell orders
Total cost = ( Benchmark Price - Trade price ) Volume
2) For Buy Orders
Total Cost = ( Trade Price - Benchmark Price) Volume
Benchamark Price Could be any of these prices :
Mid quote ( Used for IS estimate of Total Cost)
VWAP ( Can be gamed )
Opening Price (Can be Gamed)
Closing Price (Can be Gamed)