Identifier: C5T3L1 · Revision: 2026-10-26 · Classification: domestic

Decision and objectives

The practical task is to build a complete nonduplicated gross-to-net cost ledger. Make the decision reproducible: name the exposure, time horizon, cash requirement and comparison baseline before selecting a product.

Objectives: Build a complete nonduplicated gross-to-net cost ledger; Separate collateral principal from expenses and financing; Compare products using a common cash boundary.

Prerequisite: C5T2L5; completed Classes 1–4 and the Stock Market School foundation or Forex School foundation. Every example is hypothetical. Prices, dates, rates, fees, contract factors, policies and tax schedules are supplied teaching inputs, not current offers or legal parameters. No live account is needed.

Mechanics

A cost ledger states what is paid, when, in which currency and whether it is already in the quoted return. Direct securities can have brokerage, custody and conversion. Derivatives add collateral or notional funding and termination costs. A fund unit price normally already reflects expenses accrued inside the fund; investor-level charges belong outside that value. Read documents before assuming every expense has the same treatment.

Cash committed is different from cost incurred. Principal purchase and collateral deposits are assets or restricted cash, while commission and funding consume wealth. Releasing collateral or redeeming principal is not investment income.

Price and return drivers

Net economic gain = gross cash/valuation gain − nonembedded execution − funding/opportunity cost − custody/product charges not already embedded − conversion − exit − supplied tax. Define whether the gross number uses mids, fills or published fund units. Spread is separately charged only when the gross input excludes it.

Worked case

Hypothetical direct position starts TRY 100,000 and realizes a TRY 8,000 mid-based gain. Entry/exit spread cost TRY 300, brokerage TRY 200, custody TRY 100, 60-day capital funding at 24% actual/360 TRY 4,000, conversion TRY 150 and exit administration TRY 50. Pretax net = 8,000 − 300 − 200 − 100 − 4,000 − 150 − 50 = TRY 3,200. An expressly fictional tax charge TRY 480 leaves TRY 2,720, or 2.72% of initial principal. A comparator fund uses the same TRY 100,000 capital and 60-day horizon. Its published unit gain TRY 8,000 already includes its internal TRY 600 expenses; subtract the same TRY 4,000 capital funding/opportunity cost, investor redemption cost TRY 100 and fictional tax TRY 300, giving TRY 3,600. Deducting that TRY 600 again would incorrectly report TRY 3,000.

Adverse case

If the direct holding needs emergency financing costing another TRY 1,000 and stressed exit spread another TRY 700 beyond the original spread, net after the same fictional tax falls to TRY 1,020. A derivative route with a low commission may be still worse if collateral must be borrowed or a roll is necessary. An excluded cost can reverse ranking, so report a sensitivity instead of presenting omitted charges as zero.

Practical use

Obtain actual schedules and confirmations through the permitted route. Record each cost's source, valuation base, time and inclusion boundary. For variable charges use a range or a supplied scenario. The numerical tax here is fictional and does not assert a Turkish rate for a particular instrument; actual investor/year/acquisition/effective-rule facts must be checked. Record settlement and cash availability independently of economic net gain.

Use permitted domestic access routes and the actual instrument documents. Verify intermediary authority, investor eligibility, order/redemption terms, settlement, custody and executable size before implementation. Reconcile spread and commissions, funding, collateral, custody, product expenses, conversion and exit charges; an amount already embedded in a fill or fund unit price is not deducted again. A published mark or product description does not promise an executable price or liquidity.

Tax is excluded unless a numerical schedule is expressly supplied as hypothetical. For actual rules record income year, residence and individual/corporate status, instrument and acquisition/contract dates, taxable event and rule effective date. The GIB investment-income guide, checked 2026-10-26, covers 2025 individual income; its 2026 publication date alone cannot settle a 2026 liability.

Decision boundaries

Use the ledger to compare feasible equivalent exposures, not to select an instrument purely by fees. A low-cost illiquid position can fail the spending objective. Decline a ranking whose embedded expense treatment or cash requirement cannot be explained.

Practice and references

Exercise: hypothetical fill-based gain TRY 5,000, commission TRY 100, funding TRY 900, custody TRY 50 and fictional tax TRY 400. Solution: net TRY 3,550. A stated TRY 200 spread is already embedded in the fills and is not deducted again. Separately releasing TRY 10,000 collateral adds available cash but not profit.

Takeaway: Compare products using a common cash boundary with the cash dates, costs and remaining risks stated.

Product card: portfolio-decision-record. Formula: Complete gross-to-net gain. Glossary: Embedded expense, Cost boundary. Next lesson: C5T3L2. Topic test.

Sources checked 2026-10-26:

Additional product cards: mutual-fund.

Shared reference guide