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Level 21 · ◆◆◆◆ · ~12 min

The Square-Root Law

The Square-Root Law

"One of the most robust empirical regularities in finance: impact grows with the square root of size, across markets, decades and asset classes nobody expected to agree."

the square-root impact lawparticipation rate and daily volumeconcavity and what it impliesimpact decayestimating impact for a real order
🚀 You're jumping ahead. This builds on Implementation Shortfall — but play it now and you'll still earn full XP. If it feels steep, those make a gentler on-ramp.

A short lesson, then a quiz. ❤️×3 — a wrong answer costs a heart; finish with at least one left and the level is yours. Lose all three and you'll have to try again. Replay any time — XP and cleared levels are never lost.