Most of the traders don’t understand why is it so important to choose a broker with low spreads, low commissions, low swaps, and low slippage. A very common misbilef is that broker cost is important ONLY for scalpers.
Now we will show you, how much does it influence the profit of a daytrader:
You have 50% winning ratio, that means you win half of the trades while you lose the other half of them. Let’s say you win 200 points with your first position but you lose 160 points with you second one.
In total you win only 200 – 160 = 40 points. But you opened two position, therefore you win only 40 / 2 = 20 points on each position.
In this example we do mentioned only spread, but comission, slippage and swap can influence your profit as well.
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