Hello,
If i open a position when the spread is like 0.6 pips but after some time the spread becomes 0.8, does this then impact my current trade in any way?
Thanks in advance
Hello,
If i open a position when the spread is like 0.6 pips but after some time the spread becomes 0.8, does this then impact my current trade in any way?
Thanks in advance
Yes, the spread you pay to enter is not then fixed throughout the life of the trade. It can impact the stop-loss and exit orders you may have placed, as well as your manual decision to exit if the wider spread still applies at that time.
Its common and very annoying for short-term trades with very narrow stops to be stopped out when the chart seems to show that the stop price was not hit. very often a wider spread, which is not revealed by a chart, is to blame.
that is bad news but thanks for the information
Another important thing is that current spread impacts your P&L, so it is quite important to pay attention on it. You can get stopped or get a margin callout even if there were no trades on that price.