- Transaction costs can significantly reduce net profits by cutting into the margins of each trade.
- High-frequency trading strategies become less viable as transaction costs can outweigh the potential profits from small price movements.
- Traders may need to adjust their strategies to account for transaction costs, potentially taking fewer, but more selective, higher-margin trades.
How's transaction costs munching away at trading profits? Like, when you buy and sell stuff in the market, ain't those fees and stuff kinda nibbling at your gains or what? Just tryna get the picture how much of a dent these costs put on the bottom line when you're all about making that money from trades. Got any insights on that?
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