So i entered some positions today on a demo account and i noticed that sometimes price has to move some points above my price at trade to make a profit. Sometimes it did not. If anyone could explain to me why it is so. Why i do not instantly make profits from the buying price and why sometimes it does not happen. Also if this is caused by my Leverage or Spread
Cheers
There is always a spread on any position you enter. The price at which you buy is always higher than the price at which you can sell. The difference is the spread and this is the profit for the broker.
So when you buy your position is always in the red until price moves higher. If the spread is 4 pips, price must move 4 pips before you break even and 5 pips or more before you see a profit.
You need to keep learning. Don’t just go opening traders and expect them to make profit. Go and learn what direction a pair has to move when you click the sell button in order to make profit. And what direction it needs to move when you click buy in order to make profit. This is the first thing you should find out before opening trades. Spread is the difference between bid and ask price. Leverage helps you to buy or sell more in volume.
I don’t think spread or leverage affected your result
This helped me: In MT5, right-click on your chart and select the chart’s ‘Properties’ from the bottom of the list, then go to the ‘Show’ tab and tick the ‘Show ask price line’ checkbox. After doing that to your charts, you will see both price points and the unhelpful mystery will be avoided!
For an even better experience, I go into the ‘Colors’ tab and change the ‘Bid price line’ color to ‘Yellow’ and the ‘Ask price line’ to ‘Orange’. It really helps to have fewer red lines on the charts, I have found.