Commission Definition

A commission is a fee charged by a broker for executing a trade on behalf of a client.

What is a Commission?

Commissions may be charged as a flat fee, a percentage of trade value, or a per-unit amount depending on the broker and asset class.

Total trading costs typically include both commissions and the bid-ask spread.

A broker charging $5 per trade regardless of position size is applying a flat-fee commission structure.

A candlestick chart is a price chart that displays the open, high, low, and close for a period using a body and wicks.

A capital gain is the profit realized when an asset is sold for more than its original purchase price.

Capitalization, or market capitalization, is the total market value of a company's outstanding shares.