So i just started demo trading and there is something i can’t understand, example, on EURUSD i went for long on 1.12000, my unrealized P/L straightaway is negative and the price needs to go up to 1.12020 in order to be even, why is their a gap that the chart should move until my P/L becomes even? is it something related to my broker’s rates? because i can’t understand it.
And whenever i increase the quantity, this gap increases making it more difficult to reach, i find this realy worrying specially that i like scalping and i find this gap is against me. Can anyone please clarify on how to reduce this gap?
On your EURUSD example, this looks like a 2-pip spread.
This is the brokers commision for placing the trade so you will always be minus 2 pips when you place the trade.
If you scalping you should always factor the spread into your targets., I.E if you want to guarantee 5 pips profit with each scalp, then aim for 7 pips to cover the cost of the spread.
I dont use TradingView but maybe it will state the spread for that particular pair on the order window?
Nah dont think so mate, thats how brokers make their money.
All brokers charge different spreads, google " Oanda Spreads" it will give you a list of spreads for each currency pair, some are more or less than others.
Im using IG markets, and their spread for CFD on EUR/USD is 0.7 pips (average).
Your 2 pip spread seems like a lot, at least for scalping anyway.
Yes, spreads go to 0 pip but that’s very rare, they do charge commission per lot round turn. Always go with the broker that provides narrow spreads even when the market is volatile. Wider spreads can increase your costs.
i have seen most of the broker offers 0 pips , i got confused, if they provide 0 pips, how they profit from their trading. 0 pips sometimes i feel its all about part of advertisement.
