InvestorQ : Do trading costs really matter so much when I am trading in the market?
diksha shah made post

Do trading costs really matter so much when I am trading in the market?

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Ria Jain answered.
3 years ago
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Trading costs may appear to be small and infinitesimal but they can add up over time. Trading costs may look small as a percentage of the value of trade but they are quite significant chunk of your profits. More importantly, if they can distort your breakeven point substantially then you have a real problem on hand. If you are a trader in the stock markets then trading cost is an extremely important factor determining the economics of the transaction! When we talk of trading costs there are visible costs and invisible costs. The visible costs include the brokerage, stt, gst, statutory charges, stamp duty etc. There are invisible costs like liquidity premium, cost of bid-ask spreads, cost of delays in execution etc. If you are a trader then your focus must be to keep all these cost at the bare minimum to keep your trade meaningful.

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