Fees & trade costs

Include the cost of leaving a position in a trade budget

Include a size-specific exit scenario in a trade budget without treating today’s sell quote as guaranteed future liquidity.

A position budget can include an estimated cost of selling later, but today's exit quote is a scenario, not a promise about future liquidity. Separate the currently observable cost from assumptions about the eventual sale.

Budget both sides

Assume a hypothetical acquisition spends $1,000 plus $1 of separate charges and obtains 100 tokens. A current quote to sell those 100 tokens returns $988 before another $1 of separate charges. An immediate modeled out-and-back result would recover $987 against $1,001 spent, a $14 shortfall.

The calculation can reveal a meaningful trading friction. It does not forecast that the exit will recover $987 next week.

Specify what changes in the scenario

Future output depends on the token's market price, available liquidity, fees, route and the size actually sold. Swap impact depends on the liquidity available across execution prices. A later withdrawal of liquidity can alter sale economics even if a reference price looks similar.

Separate price scenarios from liquidity scenarios. For example, hold reference price fixed while testing a smaller pool, or hold liquidity assumptions fixed while changing token value. Mixing both without labeling them makes the cause of a worse exit unclear.

Report the limit of the estimate

Use the actual acquired quantity and a current quote at that size. Do not estimate a large exit by multiplying a tiny quote. Include separate sale costs and any preparation that would be needed.

If the desired question is the break-even future sale price, state the assumed exit deductions and solve the arithmetic under those assumptions. Avoid presenting that result as a price target or expected return. The value of an exit-cost estimate is that it exposes the dependencies a profitable sale would have to overcome.

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  1. Understanding Swaps on Uniswap

    Exact-input minimum output, exact-output maximum input, quote-size price impact and swap execution distinctions.

    https://developers.uniswap.org/docs/get-started/concepts/traders/swaps

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Why two pool fees do not always add to a single percentage Measure a buy-sell spread from executable quotes Estimate the cost of swapping out and immediately back