Do you think it is a good idea to let the buyer choose to buy on the BID or the ASK price?

To add comments, please log in or register
Cuong Truong
5851
Cuong Truong  
  • 53% (10)
  • 32% (6)
  • 16% (3)
Total voters: 19
Cuong Truong
5851
Cuong Truong  

Let me clarify . . .

Let's say a person decide to place a buy stop USD/MXN pair at $18. The spread is 200 pips.

The problem is the buy stop order will be activated when the ASK price plus spread hit $18. But, the Bid price is only $17.50 (this is just an example, not exact calculation of price).


The question I'm asking is . . .

Do you think the buyer should have an option to choose to place the buy stop on the BID price or place the buy stop order on the ASK price? Of course, MT4 or MT5 must be modified to have that option in the software to let users choose that option.


Asmond Hazzard
19
Asmond Hazzard  
Well if you manage to get an account that has low or no spreads, this will not be much of an issue. I doubt that any broker would allow a trader to have the option to choose when to activate a trade in that manner.
Lorentzos Roussos
29793
Lorentzos Roussos  
Or if you had a tool with your own order types that explicitly controlled the trigger
Cuong Truong
5851
Cuong Truong  
Lorentzos Roussos:
Or if you had a tool with your own order types that explicitly controlled the trigger

You're right, it can be control using EA or if MT4, MT5 platform has the order box to allow that "Bid or Ask" control function.

Take a look at this sample image I created for MT4, MT5 platform with that checkbox feature.

The idea is that whatever price the customers want to buy, it is the exact price they will get. Not, the spread forcing them to buy at different price.


buy stop

Marco vd Heijden
Moderator
10808
Marco vd Heijden  

It will cause confusion when Bid and Ask are mixed.

If you want an exact price it's more like a limit or like an option.

Lorentzos Roussos
29793
Lorentzos Roussos  
Cuong Truong:

You're right, it can be control using EA or if MT4, MT5 platform has the order box to allow that "Bid or Ask" control function.

Take a look at this sample image I created for MT4, MT5 platform with that checkbox feature.

The idea is that whatever price the customers want to buy, it is the exact price they will get. Not, the spread forcing them to buy at different price.



I could see that as an advanced option that overrides the default . This way confusion would be avoided

William Roeder
18669
William Roeder  

You buy at the Ask and sell at the Bid.

If you want to buy when the market reaches a specific Bid price, add the average spread to the open price. If you want to close sell orders at a specific bid price, add the average spread to SL/TP.

No option is necessary.

To add comments, please log in or register