InvestorQ : Are there any costs in trading that are not too obvious but can make an impact?
Nisha Chandani made post

Are there any costs in trading that are not too obvious but can make an impact?

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Archita Jajjoo answered.
4 years ago
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These are a set of costs which are not debited to your contract note or to your ledger. On the contrary, they show up as hidden costs over a period of time and show up in your portfolio performance. For example, liquidity costs can be quite high in the case of mid-cap and small-cap companies. Similarly, spread costs can be quite steep when you are trading in shallow markets or in volatile markets. These will lead to sub-optimal transaction pricing and poor investment performance. All these costs also need to be considered.
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