Why is commission charged twice using AB?

[amarjit]

Hi All,

Can someone shed some light on why commission is charged TWICE in AB?
I SEARCHED the MANUAL but could not find an answer.
I’m sure there’s a straightforward answer - it’s easy when you know how

For example, I have a B&H (that’s Buy & Hold) strategy with commission % of trade 3.5%

Here’s the calculations (This could be a LONG winded-way of doing this??):
InitialEquity = 100000 (by default)
price = 29.0854 (let’s say)
cost of trade = price * commission % of trade = 29.0854 * 3.5% = 1.01799
total price = price + cost of trade = 29.0854 + 1.01799 = 30.1034
No. of SHARES = InitialEquity/total price = 3321.88
COMMISSION in AB = No. of SHARES * cost of trade = 3321.88 * 1.01799 = 3381.64
EQUITY = InitialEquity - 2*(commission of 1 trade) = 100000 - 2*( 3381.64) = 93236.71

BTW (that’s by-the-way) I could have made a TYPO/ERROR here but I have NO idea how to edit this!

Whilst we’re here, what’s the difference between market value & equity ?

many thanks,
Amarjit

[amarjit]

Oh - forgot to say - I have my settings on YEARLY!

[Tomasz]

The commission is charged at entry and at exit as normally with any broker. Both entry and exit are market transactions that broker charges commission from.