Definitions
In plain terms
It can include commissions, fees, taxes, bid-ask spread, price impact, delay, and opportunity cost depending on the model.
Technical
A cost model declares components, units, order size, participation, spread convention, impact model, venue and currency, market state, timing, and calibration source.
Scope
A single basis-point assumption is a model input, not a universal cost for every security or order.
Examples
- A governed methodology records transaction cost with its source, cutoff, units, parameters, and effective version.
Common misconceptions
- Transaction Cost does not have one universal implementation without the declared methodology, data basis, and constraints.
Concept relationships
Required by
Where this concept is used
Evidence and governance
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: preferred label, short definition, technical definition
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-batch-004
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.