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Transaction costs are not the same price per transaction. The major costs for most transactions are the risks (credit, irr, fx etc) associated with it not the f
by kasey_junk 4y ago
Transaction costs are not the same price per transaction. The major costs for most transactions are the risks (credit, irr, fx etc) associated with it not the fixed costs of infrastructure.
Those costs go up with the value of the transaction.
- systemvoltage 4y agoGood points, this was my oversight/ignorance. Surely it is not 100% value-based costs?
- kasey_junk 4y agoNo. And you can do pricing that’s flat if you are really good at risk management but note that means the price for smaller transactions begins to subsidize the big ones. See Atlantic Monthly vs Wise for different pricing types in fx transactions as an example.