newbie questions: what's a good estimate of transaction costs?

Discussion in 'Order Execution' started by losemind, Jul 17, 2011.

  1. losemind

    losemind

    For US stocks, may I assume a 0.1%=0.001=10bps cost in my backtest?

    The strategy is a daily one based on hitting the open and close.

    Lets say the stock price is $100 per share and I am trading $10000 shares. So I am trading $1M in dollar amount.

    May I use 10bps * $1M = $1000 as my transaction cost in backtest?

    For HK stocks, due to the exchange stamp duty, it's going to be at least 20bps that's what I heard - so that's a lot of costs... what do you think?
     
    #1     Jul 17, 2011
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