Simple quetion just can't think of answer

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Does the Take profit of a BUY close on the Bid or the Ask

and ther reverse

Does the Take profit of a SELL close on which?

Sometimes I just can't think properly - this one of those moments.

 

buy -> Bid

sell -> ask

reverse for stop loss.

sell closes when bid touches sl.

buy closes when ask touches sl.

stupid me :) needed to rethink this myself lol :PP

 
forexCoder:

buy -> Bid

sell -> ask

reverse for stop loss.

sell closes when bid touches sl.

buy closes when ask touches sl.


Thank you
 
Recheck, I updated :))
 

buy -> Bid

sell -> ask

reverse for stop loss.

sell closes when bid touches sl.

buy closes when ask touches sl.

Interesting. I've always assumed sell-to-close happens at the bid, buy-to-close happens at the ask. Why does closing at TP or SL change anything?
 

Doesn't, my bad, please recheck my post.

However sell-to-close on the bid? Afaik sell opens on the bid and closes with the ask. And vice versa for buy.

 
forexCoder:

Doesn't, my bad, please recheck my post.

However sell-to-close on the bid? Afaik sell opens on the bid and closes with the ask. And vice versa for buy.

Hmm. I think of a sell-to-close the same as a sell-to-open. Either way you're getting the price a buyer is willing to pay, the bid. Right?

And likewise for buy-to-open and buy-to-close, you get the price the best seller is offering, the ask. This is how I've always understood it, but I am not 100%. The TP and SL will be in terms of the bid on a long position, and the ask on a short position. At least AFAIK. ;)

EDIT:

However sell-to-close on the bid? Afaik sell opens on the bid and closes with the ask. And vice versa for buy.

Yes, I agree with this. We're mincing words now, as is so easy to do on this subject. ;) I say sell-to-close at the bid, because it is to close a buy order that was opened at the ask.

 
Ah yes I understand what you were trying to say now :)
 

Arrrrgh!

 
Ickyrus:

Arrrrgh!

I think this was the answer to your question:

The TP and SL will be in terms of the bid on a long position, and the ask on a short position.

 

buy at the ask, sell at the bid.

If you open a buy (at the ask) the TP or SL are sell orders (close at the bid)

If you open a sell (at the bid) the TP or SL are buy orders (close at the ask)

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