lets say the spread is always 3 pips, do you pay on the way in and out, or just on the way in? newbie question
The way I understand it is that it’s only really ECNs that charge commission, usually on each leg (X amount when you go long and X amount when you cover your position, X amount when you go short and X amount when you close your position).
On the other hand, bucketshop brokers with fixed spreads (say 3 pips on Cable) have their “commission” included in the spread, which I guess means you’re paying when you open a position.
Anyone, please correct me if I’m wrong…
I am thinking you pay the spread on the close of the position. Most brokers if not all can’t guarantee a fixed spread. So if you got in at a spread of 3 but you got out with a spread of 5 then didn’t you really pay 5 on the spread?
lets say the spread is always 3 pips, do you pay on the way in and out, or just on the way in? newbie question
Initially when you open a trade, buy or sell, you are already -3 pips
(or the spread), therefore the trade needs to go in your favor 3 pips
before you start making a profit. 
Exactly right Daydreamer65.
Though on my program…
long… -3 pips to start with and the rest is mine.
short…when the trade is closed, 3 pips are subtracted.
so you only pay for the spread one time, so if the spread is 3 pips, you get in and are minus -3 pips, then when i get out im not going to be charged for the spread. is this correct?
To Mucho69 :
Correct.
You are only charged [B]once [/B]for the trade.
Whether the trade is long or short is irrelevant.
thanks for finaly answering my question, its hard to get answers on this board, everyone replies indirectly and always between the lines.
To Mucho69 :
Thank you for that feedback.
As a retired school teacher, it is my duty to answer questions very directly and in the simplest possible manner.
My apologies if I was tardy in doing so.
thanks for finaly answering my question, its hard to get answers on this board, everyone replies indirectly and always between the lines.
The problem is that not everything is black & white, there are so
many grey areas. Plus sometimes it is difficult to judge what the
opening poster (o/p) is asking.
Another problem is the level to which the o/p wants the answer,
sometimes if one answers in too basic a manner the o/p may think
that they ere being patronised.
On the other hand an answer with too much technical content will
go over a lot of peoples heads.
This is illustrated by Tymen1’s initial post
Though on my program…
long… -3 pips to start with and the rest is mine.
short…when the trade is closed, 3 pips are subtracted
On my platform whether I go long or short I am still (negative) -3 pips (or the spread) when I open my trade.
So mucho69 can you see the problem?