Robert Carver on How To Build Successful Trading Strategies
Macro Hive Conversations With Bilal Hafeez
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How to Estimate Trading Costs
The carry is effectively the cost of rolling the position, which is relatively low because it's basically four or a maximum of 12 trades per year. Most of the cost is made up of the cost of the commission and thecost of the slippage. So that's the difference between where you actually trade and the mid of the bid ask. Now as an institution, you need to be a little bit more sophisticated because you basically need to look at not just the inside bid ask, but the amount of depth in the order book.
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