Can anyone explain to me how can i be losing when i opened a buy position and the price went up 1 dollar ?
It’s just a demo account but I’m still too curious as to how can this happen ?
Did you take the spread into account
No not really. I don’t know what that is… Was trying to google to find out how this can happen but couldn’t find anything. I’m just using a demo account to so i can train and learn more about it before i invest.
The spread is the difference between the buy and sell price so you always behind the market till it moves a good amount. The spread changes depending on instrument and time of day
Ah yes. But as you can see in the photo the entry price is 22.02 and the current price was 23.26 and the position open is buy. So that’s a 1.24 dollar difference and yet i am losing 1500 euros instead of gaining… The spread was maybe 4 pips when the position was opened so that hardly explains this.
If the spread is 4 and you opened at 22 it would need to be at 26 before profit
No not really. If the spread is 4 pips (each pip is a cent on the price) and i opened at 22.02 it needs to go over 22.06 for me to make a profit. I was making a profit but for some reason over time the gross profit and the net profit change.
without seeing the chart and platform hard to say , as the pic is unclear
So the loss was due to swap fees?
Try to go through the school here before demo trading. It will explain the basics you need to know.
1 Like
Just googled a bit about swaps and most probably that’s it. But seems pretty shitty. So if i keep a position open for a long period of time I’d lose even when my prediction is correct?
Swap charges are simply the interest rate that is either paid or charged to you at the end of each trading day. When you trade on margin (using leverage) and hold a position overnight.
@albinosqerimi, The loss has definitely been generated by the SWAP fees… And the sheer size of the position you opened.
The Swap Fees on a 100 Lot (10k Barrels) position will be enormous… I don’t think you have listed your Broker in this thread, because Swap Fees can vary Broker to Broker…And a BUY position on XTIUSD will be a negative swap…
Edit: I Failed to find a Swap Calculator that included Oils or Metals to display the discrepancy…
1 Like
spread is the difference between the buy and the sell price and it’s depends on your broker as well whether they are giving you the variable spread or the fixed spread.