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Orders & Execution

Commission

Beginner

The fee your broker charges per trade, contract or share.

What it means

Small commissions add up fast with frequent trading. Always judge results after costs.

Example

$4 per round trip × 10 trades a day × 20 days = $800 a month.

In practice

Commission is the visible part of trading costs; the spread and slippage are the hidden part. Add all three to get the true cost of a round trip, then compare it with the size of your average win.

Cost matters most for short-term styles. If a strategy aims for a few ticks per trade, commission can take a large share of each win; for a swing trade aiming at a large move it is a rounding error.

What to watch for

Brokers that advertise zero commission still get paid, usually through a wider spread or by selling the right to execute your orders. Compare the total cost of a trade, not the headline fee.

Entrix Academy

Learn these terms step by step, one lesson free

Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

  • 129 lessons, start anywhere
  • Practice on every lesson
  • Final exam and certificate