HOW DO YOU CALCULATE YOUR TRANSACTION COST?
To work out the cost of a trade itself (not including swaps, commissions etc.), you take the spread and pip value and multiply it by the number of lots that you’re trading:
Trade Cost = Spread X Trade Size X Pip Value
For example:
A trade you have opened has 1.2 pips spread. In this example, you’re trading with mini lots which are 10,000 base units.
The pip value is at , so the transaction cost is .20
As you’ve probably gathered, the bigger the trade, the larger your transaction costs will be!