I’m returning newbie.
I traded in GBPJPY.
bought the price at 139.376. I’m earning already and it went up as high as 139.632.
I moved the SL at 139.380.
It went down and the SL got triggered. Broker deducted me like 7pips and had loss.
Am I missing something? MT4 is telling me that I should have like 4pips and a positive profit (not even breakeven).
You did not leave enough room for the spread.
Depending on the time of day, your broker could increase the spread to 10-15 pips on this pair, in your case 7. So if your SL is set at 4 pips from break even and the spread is 7 pips, then you’re going to be down 3 pips.
It’s the evil bid/ask problem.
MattyMoney.
SL triggered when the Market are closed (like an hour and a half ago) and the spread is like 10-12 pips that time.
So if the SL is triggered, they will deduct the current spread also?
I thought broker is already getting their part right from the time that you buy/sell? that’s why we always start in a loss?
Unfortunately, they take it when you open a trade and when you close the trade. This is their commission.
Matty, is it for SL/TP only?
and they will not deduct anything if you manually close it?
This is not accurate.
If price closes at 139.390 and your SL is at 139.380, then if the spread is 15 pips you would lose 5 pips.
And pending orders. If you manually close it you still have to pay the spread. But spreads are much lower before market close. Stay away from trading between 5-6pm (NY time) and news events because the spread always increases.
Correct. There’s no way to avoid paying the spread, opening and closing trades.
kinda still weird to me still, because if I’m closing a trade manually, they aren’t deducting anything to me which is reflected on my account history and balance.
I should have noticed it because I’m always scalping 1-5 pips regularly…
The only thing I noticed is the spread on buying and selling and not the closing ones.
Is this a live account?
Some pairs have very low spreads, like EURUSD.
If your broker does not charge a spread for manually closing then give me their name, lol. But I’m sure if you look hard enough you’ll find that fee.
MattyMoney thanks! maybe I’m just not noticing it.
1st time I got stopped in a very wide spread. lesson learned!