The problems that i face with a Floating spread.

[Oscar 铭浩]

What i know is, When my sell order hitting my tp price, it will not close my order immediatly but nid to go down few more pips that causing by spread.

same as buy order , i will enter my order before hitting my buy stop order price,which cause by the spread.

But the question is,

with a floating spread, will my sell order's TP(already enter the market) affect at anytime the spread changing? or just depend on the spread when i enter the market?

And one more question is , Can a broker control the spread? Hope someone can answer me with my poor english. Thanks anyway.

[Stuart Browne]

Oscar 铭浩:

What i know is, When my sell order hitting my tp price, it will not close my order immediatly but nid to go down few more pips that causing by spread.

same as buy order , i will enter my order before hitting my buy stop order price,which cause by the spread.

But the question is,

with a floating spread, will my sell order's TP(already enter the market) affect at anytime the spread changing? or just depend on the spread when i enter the market?

Any one more question is , Can a broker control the spread? Hope someone can answer me with my poor english. Thanks anywhere.

Hi Oscar

Sorry, are you talking about in code or manual orders? You have to keep in mind that a buy order is effectively closed by a sell order and vice versa. And you buy at the ask and sell at the bid (hence the spread). And lastly, you need to take slippage into account. Your order may very well try to close at the correct price but by the time it gets to market, the bid/ask may have moved.

And your last question, yes the broker can very easily manipulate the spread. That's where they make the $$$

Cheers
Stu