Hidden costs traders overlook and how technology eliminates them
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Most traders are meticulous about tracking their successes and losses, yet far fewer account for the less visible costs that quietly shape their long-term outcomes. Over the past year, these hidden costs have become harder to ignore. A volatile mix of renewed US tariffs, persistent global inflation pressures, ongoing geopolitical conflict in Eastern Europe, and strategic tensions between the US and China has altered the structure of financial markets rather than merely their direction. These forces have compressed reaction times, reduced liquidity buffers, and increased the frequency of abrupt price moves across asset classes. Volatility, in this environment, is no longer episodic; it is systemic. And when volatility becomes systemic, the mechanics of execution begin to matter as much as the trade idea itself. In these conditions, the difference between the price a trader expects and the price ultimately received can widen in subtle but consequential ways. Slippage, spread behavior, latency, and access to capital stop being background considerations and become structural determinants of performance. The result is that profitability is shaped not only by strategy and timing, but by a set of costs that rarely appear explicitly, yet exert increasing influence when markets are under stress. Why hidden costs should not be out of sight and out of mind There are invisible leaks in profitability that tend to surface during high-impact news, liquidity shocks, and geopolitical uncertainty. In stable conditions, these costs remain low and are often overlooked. But under volatility, they begin to expand. While such costs are rarely obvious at the point of execution, certain signals prompt closer scrutiny. Slippage is a clear example. During fast-moving markets, orders are frequently executed at levels that differ meaningfully from expectations. While individual instances may appear minor, their cumulative effect becomes material when volatility persists and trade frequency increases. What…
Filed under: News - @ February 16, 2026 6:28 pm