Lets say i’m going long and set SL and TP at 50 pips both
As I understand SL will be activated only when the BID price reaches SL level and TP when the ASK price reaches TP level right?
Now, if I want to put my SL at 50 pips and the spread is 3 pips then the price should move only 47 pips down for the SL to be activated, right? And for the TP put at 50 pips to be activated the price have to move 53 pips up
Please correct me if i’m wrong
Just as you will buy at the ask/offer, you will always sell at the bid, regardless of your order type. That means both your SL and TP will be executed at the bid.
In terms of the price movement, to make 50 pips on your TP, given a 3 pip spread, you are right. The market (meaning the bid) would have to rise 53 pips - and fall 47 pips for your SL.