I know that I should take into consideration commission and liquidity costs (bid-ask spreads) when considering placing a trade, however I am not sure how much should I worry about those? For commission I can pick broker with lower fees and try to negotiate better price, and for liquidity I can limit myself to trade only highly liquid options. Is there anything else here that I should worry about or do?
How do you estimate these costs and account for them when trading?
How do you estimate these costs and account for them when trading?
How much should I think about commission and liquidity costs?
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