Trading Is Not Just About Price Direction, Hidden Costs Are the Determinant

JAKARTA, KOMPAS.com - The financial markets are not just about reading price directions. Behind the potential profits that traders hope for, there are several factors that often escape attention, one of which is hidden costs that can affect the final trading results.

For a long time, many traders have focused on trend analysis, price movement directions, and key levels to formulate strategies and risk management. The assumption is that as long as the predicted direction is correct, profits will follow.

However, in practice, trading results are influenced by many more variables.

In the long term, these factors can even determine whether a strategy remains effective or loses its edge.

JustMarkets Client Relationship Manager, Bilal Sharqawi, emphasised the importance of understanding those cost components. According to him, traders who want to be consistent must be able to identify and account for all cost components, including those that are not immediately apparent.

“Many traders only focus on visible costs like commissions and spreads. In fact, there are other factors that have a greater impact, especially from the execution side and market conditions,” he said in a written statement on Thursday (19/3/2026).

However, in practice, the biggest costs often arise from real-time market dynamics.

When volatility increases or liquidity decreases, spreads can widen, order execution processes slow down, and transaction prices may differ from what was planned beforehand.

This condition is known as slippage, which is the difference between the expected price and the actual price when the order is executed. Although it seems small in a single transaction, its impact can become significant if it occurs repeatedly.

Bilal assesses that trading strategies rarely fail due to a single transaction. Failure is often triggered by the accumulation of small inefficiencies that occur over a long period.

“A little slippage, widening spreads, or suboptimal entries can significantly change results in the long term,” he explained.