Transaction Cost
a.k.a. Trading costs
Everything it costs you to make a trade: spread, commission, slippage and fees.
In plain English
Everything it costs you to make a trade: spread, commission, slippage and fees.
Transaction costs are the toll you pay every time you trade. In forex, the main one is the spread; many accounts add a commission. Then there is slippage and, for positions held overnight, swaps.
They look tiny on any single trade, but they are guaranteed, unlike profits. A strategy that trades often can be profitable before costs and a loser after them. Always test with realistic costs included.
Keep this word for good
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