Identifier: C5T5L2 · Revision: 2026-10-26 · Classification: domestic

Decision and objectives

The practical task is to distinguish executable quotes, transaction fills and valuation marks. Make the decision reproducible: name the exposure, time horizon, cash requirement and comparison baseline before selecting a product.

Objectives: Distinguish executable quotes, transaction fills and valuation marks; Reconcile mark-to-fill slippage without double counting; Track unfilled residual positions and settlement cash.

Prerequisite: C5T5L1; completed Classes 1–4 and the Stock Market School foundation or Forex School foundation. Every example is hypothetical. Prices, dates, rates, fees, contract factors, policies and tax schedules are supplied teaching inputs, not current offers or legal parameters. No live account is needed.

Mechanics

A quote is a conditional willingness to trade a stated side and size at a time; a fill is the actual transaction; a mark is a valuation input. A final or daily settlement reference can update a derivative account without having been available as an executable full-size quote. Fund net asset value similarly is not necessarily a screen price at which an immediate redemption pays cash.

Use actual fills to calculate realized profit. A separate slippage analysis compares those fills with a stated mark or decision price. If profit already uses the fills, subtracting slippage again is a second charge for the same price difference.

Price and return drivers

Weighted fill price = sum(quantity × fill)/filled quantity. Fill-based profit for a closed linear security = sale cash − acquisition cash − explicit charges. Mark-based profit can be reconciled to it by subtracting execution differences once. An unfilled order leaves a position even if the desired quantity appears in an order-management screen.

Worked case

Hypothetical buy 300 shares: 100 at TRY 100 and 200 at TRY 100.50, acquisition cash TRY 30,100 and average TRY 100.3333. Later sell 100 at 101 and 200 at 100.80: sale cash TRY 30,260, average 100.8667; fill-based gross gain TRY 160. Total commission TRY 60 leaves TRY 100 before funding and tax. Closing valuation mark TRY 101 would imply sale value TRY 30,300 and mark-based gain TRY 200. Closing slippage TRY 40 bridges 200 − 40 = 160. Do not calculate 160 − 40 − 60: that would deduct the closing price difference twice.

Adverse case

If only the first 100 shares sell at 101, 200 remain. Their marked value at 100.80 is TRY 20,160, not cash received. A subsequent TRY 5 decline costs another TRY 1,000 before exit charges. Under a supplied T+2 sale-cash assumption, even the first TRY 10,100 receipt is unavailable for a same-day bank payment unless a separate facility is confirmed. No universal current settlement cycle is asserted by that teaching assumption.

Practical use

Record side, size, timestamp and venue for quotes, and preserve every partial fill and cancellation acknowledgment. Reconcile member statements with custody balances and bank settlement. Include brokerage, funding, conversion and applicable tax; execution price already contains its spread. Check the fund or derivative's valuation/settlement method when comparing it with a cash-security fill.

Use permitted domestic access routes and the actual instrument documents. Verify intermediary authority, investor eligibility, order/redemption terms, settlement, custody and executable size before implementation. Reconcile spread and commissions, funding, collateral, custody, product expenses, conversion and exit charges; an amount already embedded in a fill or fund unit price is not deducted again. A published mark or product description does not promise an executable price or liquidity.

Tax is excluded unless a numerical schedule is expressly supplied as hypothetical. For actual rules record income year, residence and individual/corporate status, instrument and acquisition/contract dates, taxable event and rule effective date. The GIB investment-income guide, checked 2026-10-26, covers 2025 individual income; its 2026 publication date alone cannot settle a 2026 liability.

Decision boundaries

Use marks to measure exposure and fills to report executed outcomes. A mark can be appropriate for a risk model but cannot prove a profitable exit. Defer a size-dependent claim if the available quote is stale, lacks side/size or cannot be linked to the required instrument and route.

Practice and references

Exercise: hypothetical acquisition cash TRY 20,000, mark-based sale value TRY 21,000, actual sale cash TRY 20,850, commission TRY 50. Solution: mark gain TRY 1,000, execution difference TRY 150, fill gain TRY 850, net TRY 800. Equivalent equations are 1,000 − 150 − 50 and 850 − 50. They must not be combined into a double slippage deduction.

Takeaway: Track unfilled residual positions and settlement cash with the cash dates, costs and remaining risks stated.

Product card: portfolio-decision-record. Formula: Mark-to-fill profit reconciliation. Glossary: Valuation mark, Fill. Next lesson: C5T5L3. Topic test.

Sources checked 2026-10-26:

Shared reference guide