These are a set of costs which are not debited to your contract note or to your ledger. On the contrary they show up as hidden costs over a period of time and show up in your portfolio performance. For example liquidity costs can be quite high in case of mid-cap and small cap companies. Similarly, spread costs can be quite steep when you are trading in shallow markets or in volatile markets. These will lead to sub-optimal transaction pricing and poor investment performance. All these costs also need to be considered.

When you break down your performance, you will be surprised to see how much these costs take away from your performance. Do the detailing to improve your trading performance!