[Verse 1] When you buy or sell a stock today Two kinds of costs will come your way Explicit fees you clearly see Implicit ones hide stealthily Commissions charged by brokers straight Posted numbers on your trading slate [Chorus] Bid-ask spread, commission fee Market impact, can't you see Explicit costs are crystal clear Implicit ones cost more, I fear Total transaction, count them all Every penny, big and small [Verse 2] The bid-ask spread's a sneaky thief Between the buy and sell belief Market makers pocket change In this organized exchange When your order moves the price That's impact, roll the dice [Chorus] Bid-ask spread, commission fee Market impact, can't you see Explicit costs are crystal clear Implicit ones cost more, I fear Total transaction, count them all Every penny, big and small [Bridge] Timing costs when markets shift Opportunity's expensive gift Delay can make your profits shrink Faster than you'd ever think [Verse 3] Large orders shake the market floor Price moves against you more and more Temporary impact fades away Permanent impact's here to stay Slippage eats your expected gain Trading costs drive traders insane [Chorus] Bid-ask spread, commission fee Market impact, can't you see Explicit costs are crystal clear Implicit ones cost more, I fear Total transaction, count them all Every penny, big and small [Outro] Calculate before you trade Every cost that must be paid Explicit plus implicit too Total cost equation's true
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