Calculation method
Cost = (Buy notional + Sell notional) × (Fee % + Slippage %) / 100 Net P&L = Sell notional − Buy notional − Cost
Assumptions & scope
This simplified two-leg model applies the same percentage rates to both transaction notionals. It excludes fixed minimum charges, taxes, funding, borrow costs and market impact beyond the supplied slippage assumption. Net P&L assumes both legs describe the same fully closed cash-asset holding.
Worked example
Illustrative inputs: buy 10,000, sell 11,000, fee 0.1% and slippage 0.05% per leg. Estimated total cost is 31.50 and net P&L is 968.50.
Sources & references
References support specific definitions or methodological context. Examples and research checklists are explanatory; no performance result is claimed.