How Is “Implicit Cost” Related to Slippage and the Bid-Offer Spread?

Implicit cost is the non-explicit cost of trading, which includes slippage and the cost of crossing the bid-offer spread. While the spread is a visible component of the transaction cost, slippage is an unpredictable cost that arises from the market impact of the trade itself.

Both are crucial elements of the total execution cost, which is the implicit cost.