Leverage, positioning and transaction costs: Don’t let costs eat up your principal
- 2026-09-17
- Posted by: Wmax
- Category: Tutorial
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Transaction costs are charged based on lot size or nominal amount. The higher the leverage and the heavier the position, the greater the cost accounts for the principal. This article dismantles the mechanism of linear amplification of spreads, commissions and overnight interest with positions, and explains how to incorporate cost proportion into trading discipline by controlling leverage matching, setting cost caps and viewing real reports to avoid hidden blood loss in small accounts.
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