Spreads, Slippage, and Total Transaction Cost

Why backtests without costs lie gently.

4 Lessons8m total

The spread is the gap between bid and ask. Slippage is the difference between expected and realised fill price, often worsening with size and speed.

Course Overview

Why backtests without costs lie gently.

✓Core concepts explained with market context

✓Practical examples tied to real instruments

✓Risk-aware framing — educational only

✓Next-step links across the VegaDeck curriculum

The spread is the gap between bid and ask. Slippage is the difference between expected and realised fill price, often worsening with size and speed.

News events and session opens widen costs. Crypto perps add funding; FX swaps add forward points on longer holds.

When evaluating any strategy research, insist on conservative cost assumptions and stress multiples of normal spreads.

Educational only · not investment advice · Risk disclosures

3 Lessons · 24m

1Bid-Ask Spreads and Visible DepthWhy the touch price is not always your fill price at size.8m▢

2Order Types: Market, Limit, IOC, FOKLiquidity taking vs making in plain language.8m▢

Join readers who are advancing their skills with structured VegaDeck Academy lessons.

Educational only · not investment advice · Risk disclosures