You may have relatives or friends who are on the market. I might be dealing with stocks, futures, options or Forex. You may have heard exciting stories about their trade, and perhaps this aroused his curiosity and asked if he is trading well. One of the first questions to ask before the trade would be: What are the trade.
Transaction costs depend on several factors, such as instrument and the market works.Most of the cost you pay for are your brokerage firm. They need to make a living in exchange for the services they provide.
Generally, you can expect the following costs incurred:
Fees
Slip
Rates start
Costs
Fees
These costs are paid to brokers. The Commission will pay is calculated as a percentage of the whole surgery. For example, if you buy or sell \$ 10,000 of stock, a broker may charge 1% of it. It can also be charged levels: for example, if you buy or sell stocks, with a combined market capitalization of less than \$ 10,000, then the broker may charge \$ 30. If less than \$ 20,000 may be charged \$ 50. So, if you bought \$ 5,000 worth of shares, however, to pay \$ 30. And if you bought \$ 12,000 worth of shares still pay the Commission \$ 50.
Slip
Price of a commodity is always in motion, provided that the markets are open. Therefore, if the stock price is trading \$ 10 now, it does not mean that when you decide to buy, you can buy shares at \$ 10 each. When you place your order and it was full, the market may have changed already. If your order to buy shares was full for \$ 10.25 and bought 100 shares, the total cost of the slip is \$ 25 (which is 100 shares * \$ 0.25). If you had the same slide, when it is sold, the cost of full slip for you to enter and exit the market would be \$ 50 (which is \$ 25 * 2 stores).