Weighing Execution Conditions On Trading Platforms

Tuesday, 25/11/2014 | 00:01 GMT by Guest Contributors
  • Execution conditions are everything. Depending on the nature of the strategy, transaction costs can make up 20% of your equity p.a.
Weighing Execution Conditions On Trading Platforms

Execution conditions are everything. Depending on the nature of the strategy, transaction costs (spread, commission) can make up more than 20% of your equity p.a. And that's assuming that your desired trades get placed as you want them: in an environment with Slippage / re-quotes they may not even get placed, which means you get NOTHING for your intellectual property.

So, before you even place one single trade, do some informed shopping for solid execution. It's the single best investment you can make into your trading. And unlike producing a winning strategy (which is seriously hard), EVERYONE can find a good broker to trade with.

Execution conditions are everything. Depending on the nature of the strategy, transaction costs (spread, commission) can make up more than 20% of your equity p.a. And that's assuming that your desired trades get placed as you want them: in an environment with Slippage / re-quotes they may not even get placed, which means you get NOTHING for your intellectual property.

So, before you even place one single trade, do some informed shopping for solid execution. It's the single best investment you can make into your trading. And unlike producing a winning strategy (which is seriously hard), EVERYONE can find a good broker to trade with.

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