&profit Calculation - wrong ?

[InvestOneForex]

Hi,

I try to understand why i haven't the right &Profit amount on terminal vs my calculation.

Please see my

my balance 1000€

account in EUR

leverage 100

Risk : 1% => 10€

for a BUY trade  :

BID / ASK price  :    1,18874 / 1,18905

spread (3,1)

StopLoss = 30pips  => 1,18605

With calculation, for 30 pips and 10€ of risk , i need :

3963,5  UNITES

0,039635  Volume 

price of pip is 0,333€

So with this calculation, normaly i risk 10€, so if the SL is touched i lost 10€  ( spread is already included in this BUY position )

Please the the terminal,  i do not lost 10€ but MT4 shows me &PROFIT at -7,75  (in euros ? i suppose, coz account is eur)

Could you please explain me why i don't lose 10 instead 7,75. How is calculated is -7,75 ..  What does it mean & before the profit .. is it "Profits/Losses" ?

Also, why i don't see the swap column in my terminal ? (the reason is not the swap or commission cause normaly i do lost 10€ or more, not only 7,75 !

An another question; when the ST is touched. Is this the BID or ASK price we need to consider ?  The profit/losses is calculated with the Bid/ask price at the moment of taking trade (so ASK), or at the cloture (Bid or ask ?)

Thank you for you help

[William Roeder]

InvestOneForex: why i don't lose 10 instead 7,75

BID / ASK price  :    1,18874 / 1,18905 StopLoss = 30pips  => 1,18605

1.18874 - 0.00300 = 1.18574

You buy at the Ask and sell at the Bid. Pending Buy Stop orders become market orders when hit and open at the Ask.

1. Your buy order's TP/SL (or Sell Stop's/Sell Limit's entry) are triggered when the Bid / OrderClosePrice reaches it. Using Ask±n, makes your SL shorter and your TP longer, by the spread. Don't you want the specified amount used in either direction?

2. Your sell order's TP/SL (or Buy Stop's/Buy Limit's entry) will be triggered when the Ask / OrderClosePrice reaches it. To trigger close to a specific Bid price, add the average spread.
             MODE_SPREAD (Paul) - MQL4 programming forum - Page 3 #25

3. 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.)
   Most brokers with variable spreads widen considerably at end of day (5 PM ET) ± 30 minutes. My GBPJPY shows average spread = 26 points, but average maximum spread = 134 (your broker will be similar).

[InvestOneForex]

William Roeder #:

1.18874 - 0.00300 = 1.18574

You buy at the Ask and sell at the Bid. Pending Buy Stop orders become market orders when hit and open at the Ask.

1. Your buy order's TP/SL (or Sell Stop's/Sell Limit's entry) are triggered when the Bid / OrderClosePrice reaches it. Using Ask±n, makes your SL shorter and your TP longer, by the spread. Don't you want the specified amount used in either direction?

2. Your sell order's TP/SL (or Buy Stop's/Buy Limit's entry) will be triggered when the Ask / OrderClosePrice reaches it. To trigger close to a specific Bid price, add the average spread.
             MODE_SPREAD (Paul) - MQL4 programming forum - Page 3 #25

3. 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.)
   Most brokers with variable spreads widen considerably at end of day (5 PM ET) ± 30 minutes. My GBPJPY shows average spread = 26 points, but average maximum spread = 134 (your broker will be similar).

Thank you for your reply,

if i buy at ASK, i need to take  1,18905  as reference ?

minus my SL

StopLoss = 30pips  => 1,18605 isn't it  ? 

why 1.18874 - 0.00300 = 1.18574  ?

when i buy the ASK, the spread is included ( 1,18874 + spread = 1,1890 ) so, not need to add.

Also, my spread needs to be included in my risk(10€) so it is 30 pips, incluing the spread

Can you give me an exemple, buying/selling a position, when the spread is calculated (because it is not the same calculation; in sell, spread must be added).

Do you know why i have -7,75 of profit ?  ... my stoploss is 30 so, my risk is 10€. If ST reached, profit => -10 normally

Thank you very much

[Daniel Cioca]

InvestOneForex #:

Thank you for your reply,

if i buy at ASK, i need to take  1,18905  as reference ?

minus my SL

StopLoss = 30pips  => 1,18605 isn't it  ? 

why 1.18874 - 0.00300 = 1.18574  ?

when i buy the ASK, the spread is included ( 1,18874 + spread = 1,1890 ) so, not need to add.

Also, my spread needs to be included in my risk(10€) so it is 30 pips, incluing the spread

Can you give me an exemple, buying/selling a position, when the spread is calculated (because it is not the same calculation; in sell, spread must be added).

Do you know why i have -7,75 of profit ?  ... my stoploss is 30 so, my risk is 10€. If ST reached, profit => -10 normally

Thank you very much

Because you SEE… as Per your calculation you should have 0,039 volume open for 30 pups SL  but your broker open 0,03… maybe that is way you only lost 7 eur instead of 10

[InvestOneForex]

I had an another exemple and the profit is not the good one.

my balance 1000€

account in EUR

leverage 100

Risk : 5% => 50€

for a BUY trade  :

EUR/USD  -  BID / ASK price  :    1,18401 / 1,18410

spread (0,9)

StopLoss = 30pips  => 1,18110

With calculation, for 30 pips and 50€ of risk , i need :

0,20 lots (Volume) 

With calculation, I cannot try how MT4 found -51,89 for &profit

and why is it not -50 or less, instead of -51,89 whereas i setted a max SL at 30pips = 50€ (and the spread is included when i BUY)

Do you know the calculation about &profit ?

If anybody can explain me how i can find this value with my values ?

Thank you very much