I have experience in trading but mostly in lower frequency quantitative trading. I've moved into HFT research and someone the other day mentioned markouts. I couldn't find anything online explaining what markouts are.
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1$\begingroup$ A Google search returned this as one of the top results iextrading.com/docs/… Seems like "markout" is used to refer to the virtual profit and loss of closing out a position after a fixed time using a specific rule (e.g. mid / other side / ...). See Section 5.1 in the paper for details. $\endgroup$– LocalVolatilityCommented Sep 3, 2018 at 15:42
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I've heard it more commonly called a "markup", but either way, it's the difference between a current price (e.g. a trade price) and some microprice (midpt, or some fancier fair-value estimate) at some time in the future, typically some number of seconds, or quote updates. Sometimes people refer to just this future micro-price as the markup. It's used at the target value for fitting high-frequency models.
