Round Trip Transaction Costs

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Round Trip Transaction Costs

All commissions and other expenses related to trading a security. When an investor buys or sells a security, he/she must usually pay a fee to his/her investment adviser, who may or may not also be the broker, who is also entitled to a fee. Research and other indirect costs informing investment decisions are not usually considered transaction costs unless they directly relate to or result from a specific transaction. The investor accounts for these expenses when calculating whether an investment made a profit or loss. See also: All in Cost.