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The Commission tab allows you to set up global level commission rate information against different instrument types and connectivity providers. Global commission rates can be overridden by specifying instrument level commission rates. Therefore, when NinjaTrader calculates a trade's commission costs, it will use a commission rate value at the instrument level and if one does not exist, it will use the global commission rate.
To set commissions for backtesting purposes, set commissions for the "Simulator" connectivity provider.
Adding a Flat Commission Rate
In the following example we will add a global flat commission for trading futures on our Market Replay connection. This means whenever we connect to our Market Replay connection and trade against it, commission costs will be calculated against the values we will enter below.
| 1. | Locate the Futures - Replay connection and expand the options branch by clicking on the "+" icon. You will see a "Commission levels" property (none defined) and a "Minimum commission" property. |
| 2. | Insert your commission per side next to "Minimum commission" and press the OK button. For this example, we will assume a $2.50 commission rate per side. The image below displays this configuration. |
Once commissions have been entered, they must be enabled. Please select the menu within the Control Center. Select the menu item and check "Apply commissions to PnL calculations."
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Adding a Tiered Commission Rate
We are going to add a global tiered commission rate for trading stocks on our Market Replay connection. The commissions are tiered from the top down. This means whenever we connect to our Market Replay connection and trade against it, commission costs will be calculated against the values we will enter below:
| 1. | Locate the Stocks - Replay connection and expand the options branch by clicking on the "+" icon. You will see a "Commission levels" property (none defined) and a "Minimum commission" property. |
| 2. | Many brokers who support trading equities have a minimum commission rate. Let's assume that our Market Replay connection minimum commission is $1.00 by setting that value in the property. Then put your mouse cursor in the "Commission levels" property. The "..." button will become visible which allows us to add multiple commission levels. |
| 3. | Once you click on the "..." button, a commission level collection editor will appear. We are going to add (press the "New" button) two commission rate levels. $0.01/share for the first 500 shares and then $0.005/share for every share after that until 9,999 shares. The image below displays this configuration. |
Once commissions have been entered, they must be enabled. Please select the menu within the Control Center. Select the menu item and check "Apply commissions to PnL calculations."
Note: Tiered commissions are applied on a per execution basis and not a total position basis.
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