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A beginners question

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mge0rge
66
mge0rge  
I entered a sell trade . The price is currently just below my sell price, maybe 2 or 3 pips. Why am i still minus on pips on my trade order? It seemed to me that when I place a trade the spread is automatically applied as when i entered the market my sell order was not executed at the current market price , but below it. AND that from my understanding should be the spread. So when the price catches up the handicap and now is bellow my sell price ,shouldn't I be starting to make my own profits and be on the positive ?
Marco vd Heijden
Moderator
6138
Marco vd Heijden  

You have just discovered ask and bid, congrats.

Now press F8 and go to tab 'show'

There check 'show ask price line'

To see why it happens.

mge0rge
66
mge0rge  
Marco vd Heijden:

You have just discovered ask and bid, congrats.

Now press F8 and go to tab 'show'

There check 'show ask price line'

To see why it happens.


So the ask line is the spread? , In my sell trade as long as this line is bellow my entry then I am in profit , right ? Also this ask line will be the line that hits my stop loss and take me out , not the current price line , right ?

Also the spread is variable and from what is see live on the cart the spread line remains variable also one i am in a trade , I can see it getting closer and moving away from the price line as the spread gets bigger or smaller .. am i right about this ?

Basic Principles - Trading Operations - MetaTrader 5 Help
Basic Principles - Trading Operations - MetaTrader 5 Help
  • www.metatrader5.com
Before you proceed to study the trade functions of the platform, you must have a clear understanding of the basic terms: order, deal and position...
whroeder1
17122
whroeder1  
mge0rge: I entered a sell trade . The price is currently just below my sell price, maybe 2 or 3 pips. Why am i still minus on pips on my trade order? It seemed to me that when I place a trade the spread is automatically applied
mge0rge: So the ask line is the spread? , In my sell trade as long as this line is bellow my entry then I am in profit , right ? Also this ask line will be the line that hits my stop loss and take me out , not the current price line , right ?
  1. When you buy you pay the spread on entry, when you sell you pay it on exit. It's not "automatically applied." The order is not in profit until the Ask is below your entry price.
  2. The difference between the Ask and the Bid is the spread.
  3. Profit = OrderProfit + commission + swap. Not just entry-Ask.
  4. Correct
    • Your buy order's TP/SL are triggered when the Bid reaches it. Not the Ask.
    • Your sell order's TP/SL will be triggered when the Ask reaches it. To trigger at a specific Bid price, add the average spread.
    • The charts show Bid prices only. Turn on the Ask line to see how big the spread is (Tools -> Options {control-O} -> charts -> Show ask line.)
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