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Registered company

ODEON KAPITAL AG

UID CHE-348.764.474 · CH-ID CH-020.3.052.833-2
FCRO-ID 1579892

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c/o Chambre de Commerce et d'Industrie France Suisse
Neumarkt 6, 8001 Zürich

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© 2026 ODEON KAPITAL AG. All rights reserved.

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ODEONKAPITALS
HomeAccount types
  1. Learn
  2. Trading Glossary
  3. Cost Basis

Cost Basis

Cost basis is the amount assigned to an asset for measuring gain or loss, usually adjusted under applicable accounting and tax rules.

Defined termReviewed 16 July 2026

Related terms

Capital GainProfit and Loss (P&L)Realized P&LTransaction FeeDrawdownPortfolio

Educational risk notice

This material is general education, not personal investment advice or a promise of results. Markets can move beyond planned levels, and losses can exceed expectations when leverage, liquidity, gaps, or operational failures are involved.

Read the full risk disclosure
Trading glossaryReviewed 16 July 2026

Definition

Cost basis is the amount assigned to an asset for measuring gain or loss, usually adjusted under applicable accounting and tax rules.

In market context

Basis may begin with purchase price and eligible transaction costs, then change because of distributions, splits, returns of capital, transfers, or other events. When units were acquired at different times, the permitted identification method can affect which basis is assigned to a disposal. A platform’s displayed average entry price may not equal tax basis, so original records and jurisdiction-specific rules remain important.

Source

Use the primary source for fuller regulatory or market context.

IRS Topic No. 703 — Basis of Assets

Educational risk notice

This material is general education, not personal investment advice or a promise of results. Markets can move beyond planned levels, and losses can exceed expectations when leverage, liquidity, gaps, or operational failures are involved.

Read the full risk disclosure

Related glossary terms

Selected from explicit term relationships and shared tags.

beginner3 min

Capital Gain

A capital gain is the increase realized when a capital asset is disposed of for more than its applicable tax basis, subject to local rules.

reporting · taxRead guide
beginner3 min

Profit and Loss (P&L)

Profit and loss measures the financial result of positions or account activity over a stated scope, separating open valuation changes from completed results.

reporting · portfolioRead guide
beginner3 min

Realized P&L

Realized P&L is the profit or loss recorded when some or all economic exposure is closed, settled, expired, or otherwise completed.

reporting · portfolioRead guide
beginner3 min

Transaction Fee

A transaction fee is a charge associated with submitting, executing, settling, transferring, or recording a financial or blockchain transaction for the user.

fees · executionRead guide