Fees, spreads and slippage

The three costs of a trade: the exchange fee, the spread between buy and sell prices, and slippage on bigger orders.

What it means

Together they make each buy and each sell a little more expensive than the price on the screen.

What to watch

Thin order books, wide spreads and large market orders, which all raise the real cost.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.