Why is commission charged twice using AB?

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 :slight_smile:

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

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

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.

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