oussama94
05-28-2017, 18:50
Low transaction costs make online ** trading the best market to trade
for short-term traders. For an active equity trader who typically places 30
trades a day, at a $20 commission per trade you would have to pay up to
$600 in daily transaction costs. This is a significant amount of money that
would definitely take a large cut out of profits or deepen losses. The reason
why costs are so high is because there are several people involved in an
equity transaction. More specifically, for each trade there is a broker, the
exchange, and the specialist. All of these parties need to be paid, and their
payment comes in the form of commission and clearing fees. In the ** market,
because it is decentralized with no exchange or clearinghouse (everything
is taken care of by the market maker), these fees are not applicable
for short-term traders. For an active equity trader who typically places 30
trades a day, at a $20 commission per trade you would have to pay up to
$600 in daily transaction costs. This is a significant amount of money that
would definitely take a large cut out of profits or deepen losses. The reason
why costs are so high is because there are several people involved in an
equity transaction. More specifically, for each trade there is a broker, the
exchange, and the specialist. All of these parties need to be paid, and their
payment comes in the form of commission and clearing fees. In the ** market,
because it is decentralized with no exchange or clearinghouse (everything
is taken care of by the market maker), these fees are not applicable