Costs

Family IV · 32 entries

This family of terms covers the costs of placing and holding a trade: the price of entering, the price of staying in, and the price of moving money in and out. The terms answer the question of what a trade actually costs beyond the headline price, from the pip and spread to commission, swap and slippage. A newcomer should read pip first, because it is the unit in which most other costs in this family are expressed.

The most common mistake is comparing costs by spread alone while ignoring commission, swap and fees that apply over the life of a trade.

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