Trading costs: spreads, commissions and swaps

Spread is part of entering and exiting

The spread is the difference between available bid and ask prices. A buy normally opens on one side and closes on the other; the price must move enough to cover that difference before the position becomes positive, ignoring other costs. The size and variability of the spread depend on the instrument and trading conditions.

Do not assume the chart's visible line is the price available for every execution. Many charts display one side of the market or a reference price. Check the platform's quote convention and contract specification. A strategy tested on a single price series without a realistic spread model can overstate small, frequent gains.

Commission needs a unit and a complete round trip

A commission quote may be per lot, per contract, per side or for the full round trip. Those descriptions produce different totals. Confirm the unit and multiply it by the actual volume. A charge shown only when closing can also make a running gross result look better than the eventual statement.

For a purely hypothetical rate of $3 per side per lot, a two-lot position costs $6 to open and $6 to close, or $12 total. That is not a MultiFunded rate quote. Use the current instrument specification for your actual calculation, and keep it with the backtest assumptions so a later reviewer can reproduce the net result.

Holding costs can change the economics

Overnight financing or swap adjustments can apply when a position is held through the instrument's rollover. Rates, direction, timing and special charging days can differ by symbol. Do not assume that holding through a weekend is free simply because the account allows weekend positions.

Estimate the cost for the expected holding period and verify it against the statement afterwards. If a strategy frequently extends trades, test a longer-duration cost scenario as well. A price target that looked worthwhile before financing may produce a much smaller net result after several nights. Permission to hold and the cost of holding are separate questions.

Slippage is a difference, not a fixed fee

Slippage describes a difference between a requested or expected price and the execution obtained. It can be favourable or adverse. Fast markets, gaps and available liquidity can affect it. A stop order expresses an exit instruction, but it does not establish that every fill occurs at exactly the selected price.

Use your own execution records to compare expected and actual prices under similar conditions. Keep the direction of the trade and the spread convention consistent. One unusually poor fill is worth investigating; an average from calm sessions should not be applied blindly to major releases. A tested range is more useful than assuming zero execution difference.

Costs belong in rule checks and journals

Daily loss and maximum loss are account conditions, so leave a buffer for costs and execution uncertainty. Qualifying days also depend on the programme's result calculation; a gross amount right on a threshold may not produce the net amount you expected. Reconcile the dashboard with the statement before counting an eligibility milestone.

In the journal, separate gross price result, commission, financing and execution difference where the platform data allows it. Review cost by symbol, session and holding time. If gross performance looks stable while net performance weakens, that breakdown can identify whether the issue is execution, a change in activity or a strategy whose expected edge is too small for its costs.

Key takeaways

• Use the current contract specification rather than an assumed universal cost.
• Calculate both sides of commissions and the expected holding period.
• Judge strategy results and rule room after relevant costs.

Sources and rule check

MultiFunded-specific details were checked against the programme configuration and rulebook on 23 October 2026. Read the conditions attached to your own account before trading; educational examples do not predict results.

• MultiFunded programme comparison — current phase targets and programme limits.
• MultiFunded trading rules and Terms — definitions, restrictions and reward conditions.