Forex glossary
Commission
Documentation context: The tariff may charge entry, exit or both sides, per lot or deal, immediately or at a later time.
A separate transaction fee charged according to the provider's tariff. Check whether a quoted amount covers one side or the full round trip.
Illustrative example
How does it work in practice?
A fictional tariff charges 3 USD to open a position and another 3 USD to close it. Total commission is 6 USD; spread and financing are additional components of the trade's result.
Valuation, closed P/L and charges
Fictional tariff: 3 USD per lot per side, plus three financing credits of +1 USD per lot each. A 0.20-lot position closes with +20 USD of price P/L.
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| Term | What it describes | Shared example |
|---|---|---|
| Floating P/L | Valuation of a position still open; it does not confirm a future exit price. | A +5 USD reading before closure remains unrealized. |
| Realized P/L | P/L of the closed portion, with separately assigned charges and credits. | 20 − 1.20 + 0.60 = 19.40 USD net for the closed position. |
| Commission | A fill-related fee; this model charges both opening and closing. | 3 × 0.20 × 2 = 1.20 USD total commission. |
| swap (overnight charge) | Financing on a carried position; it can be a debit or credit. | +1 × 0.20 × 3 = +0.60 USD; three applications, not an assumed calendar rule. |
Takeaway: Separate open valuation from closed results. Signs and fee bases are inputs to establish, rather than fixed features of the market.
Change an assumption, see the result
What changes if…?
Change commission per side for the whole model position. Compare the round-trip sum with P/L after costs. Convert per-lot rates into this position’s amount first.
Model: price P/L already uses the relevant Bid/Ask prices. Commission is charged twice; swap is a hypothetical fixed daily amount for the whole position. No conversion or other fees. Actual rates and day multipliers may differ.
Check your understanding
Scale a model per-lot rate to quantity and both execution sides.
Show the answer and explanation
1.20 USD
3 × 0.20 × 2 = 1.20 USD. Two sides mean a fee for opening and another for closing.
Reconcile a trade result with the account
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Related terms
Sources and documentation
- MetaTrader 5: executing trades
Execution modes, requotes, position handling and local trailing on this platform.
Document read: - MetaTrader 5: Market Watch
Symbol specifications define contract size, volume constraints, margin calculation, execution rules and the commission charging model.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.