Transaction costs are the expenses you encounter when you make trades in the markets. These costs include slippage, spreads, and fees.

• Slippage: Slippage refers to the difference between the expected price of a trade and the actual executed price. It occurs when there is a delay between placing a trade order and its execution, leading to potential losses or gains.  Check out our blog article where you can learn more about slippage in detail.
• Spreads: Spreads are the gaps or differences between the bid price (the price at which buyers are willing to buy) and the ask price (the price at which sellers are willing to sell). The spread indicates the transaction cost of buying or selling an asset and is typically collected by brokers or exchanges. Wider spreads can result in higher transaction costs, which can affect the profitability of trades.
• Fees: Fees are charged by exchanges or brokers for executing trades. Fees can vary depending on the exchange or broker, asset class, trade size, and other factors. Fees can be in the form of a fixed amount per trade or a percentage of the trade value and they contribute to the overall transaction cost

Transaction costs may not be visible on exchanges as they are not explicitly displayed. Instead, these costs can be included in asset prices or incorporated into bid-ask spreads. Traders need to analyze market conditions, compare exchanges or brokers, and consider historical data to estimate transaction costs accurately. Awareness of these costs is vital for effective trade planning and risk management.

At Cleo.finance, we understand the significance of knowing your transaction costs. That’s why our platform enables you to easily access transaction costs associated with your exchange, alongside other essential statistics. Cleo.finance is committed to providing traders with a comprehensive and detailed understanding of each position, employing a holistic approach to trading statistics and data.