Market microstructure factors that influence trading costs and execution quality include bid-ask spreads, depth, liquidity, and latency.

• A. Market depth, bid-ask spreads, liquidity, and latency determine slippage and price discovery.
• B. Latency is the only factor affecting execution costs.
• C. Order size has no impact on trading costs.
• D. Volatility never affects price discovery.

Answer: (A)