Why do I see a small loss immediately after opening a position?

This is normal. When a position is opened on Cleo, all real trading costs — including commissions and slippage — are reflected immediately in the PnL. Many platforms delay or visually offset these costs, which makes positions appear to start at “0.” Cleo displays execution costs transparently from the moment the trade is filled.

What is slippage?

Slippage is the difference between the expected execution price and the actual average fill price of an order. It occurs when there is insufficient liquidity at a single price level to fill the entire order.

Example:
If the best available price is 0.5221 but your order fills at an average price of 0.5229, the slippage is 0.0008.

Why does Cleo display slippage while other platforms may not?

Slippage and execution costs are inherent to real market trading. Some platforms do not explicitly display these costs at the time of execution. Cleo reflects them immediately to provide full transparency and accurate risk representation. This allows traders to evaluate true entry cost and market exposure.

Why can slippage sometimes appear significant?

Slippage depends primarily on:

• Order size
• Market liquidity

Large market orders may consume multiple levels of the order book, especially in lower-liquidity assets.

For example, an $85,000 market order on a smaller-cap asset may move through several price levels before fully executing. This behavior reflects real exchange mechanics.

What is the difference between realized and unrealized loss?

Realized loss:
Commission fees applied at the time of execution.

Unrealized loss:
Temporary price deviation caused by slippage or immediate market movement after entry.

Unrealized PnL may adjust as the market rebalances.

Is this execution model realistic?

Yes.

Cleo simulates real exchange conditions, including:

• Order book depth
• Market impact of large orders
• Commission fees

This ensures that traders see accurate execution pricing and true market exposure at all times.