Trading costs

Trading costs

Costs of buying and selling marketable securities and borrowing. Trading costs include commissions, slippage, and the bid/ask spread. See: Transactions costs.

Trading Costs

All commissions and other expenses related to the trade of a security. When an investor buys or sells a security, he/she must usually pay a fee to his/her investment adviser and/or broker. Research and other indirect costs informing investment decisions are not usually considered trading costs unless they directly relate to or result from a specific transaction. The investor accounts for these expenses when calculating whether an investment earned a profit or loss. See also: All in cost.
References in periodicals archive ?
Other work (pdf) has looked at the impact of time delays on international trade, finding that reducing trading costs can stimulate exports more than reductions in tariffs.
4) Fact: Momentum can survive trading costs despite higher turn over.
To the extent that recent developments in transportation and communication technology have lowered trading costs, which are not captured by changes in tariffs, our trade cost measure--which includes transportation costs--better captures changes in trade barriers.
Previous attempts have excluded one fundamental piece of the jigsaw; trading costs.
Summary paragraph: Thinking of VWAP as a risk-free strategy could add to trading costs and worsen execution performance, according to Ofir Gefen, head of research and algo consulting, ITG Asia-Pacific.
Such transactions are all the more attractive because of cheap trading costs.
The solution consisted of devising and providing to them a very simple rule of thumb for incorporating approximate trading costs in their calculations.
GAO's analysis of data from firms that analyze institutional investor trades indicated that trading costs for large investors have also declined, falling between 30 to 53 percent.
Trading costs (commissions and bid/offer spreads) are about 1% to buy and 1% to sell (or 1% X 2).
All of these strategies have yet one more factor to consider: trading costs.
They said it would save investors money on trading costs.
GTA is a web-based trading cost analysis consulting firm quantifying trading costs in the Global Equities, Foreign Exchange, Fixed Income and Futures and Options markets.