The Importance of Slippage in Trading

Is it normal for you to have more cost on the slippage side than the actual commission? Is that completely normal that ratio kind of three to one? Yeah that is normal and I think it will depend a lot on the sort of amount of capital you're trading. If I was an institutional manager I'd expect my commissions to be almost zero pretty much as a proportion of my capital. But slippage would be a lot bigger, it would be aA good way of thinking about it. So there's sort of 90 basis points, 1% 1.5%. A little bit higher in terms of that equation.

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