Hi everyone. Still on the Demo Account and testing out some orders. Still actually on my first day of demo and one of my few orders as newbie
i set up a SellStop Order with a TP lower. Price falling triggered Sell stop and even passed lower its TP. My question is why is Profit for that order still showing minus though?
I know that price can change until my order is closed but at that moment since chart price is lower than my TP why is still shows -0.03 on my profit column?
Do I miss something?
You can see on the image attached what I mean as well. Just focus on the sell order and ignore the buy order on the image.
Usually the answer is the spread - the difference between the bid price - where you sell, and the ask price, where you buy. On the chart, the bid price is now 1.12483. But the ask price is 1.12496. This means that if you sell now at bid price 1.12483, you will not be able to close for a profit (by buying) until the ask price has dropped to less than 1.12483.
Thanks for the reply. What I thought is: I set a SellStop order at 1.12493 when the chart was still above that price and I added a TakeProfit on that Sell order bit lower at 1.12490.
As the chart kept on falling it was triggered at 1.12493 and turned pending sellstop in an actual sell order. Chart still continued to fall and passed my TP 1.12490. Wasn’t the order at that point suppsoed to have + in profit? I won’t discuss that it wasn’t closed even though it passed TP because I know there can be some slippage I guess. But as the chart kept falling even lower my TP wasn’t the profit supposed to increase? Instead it was -0.03
No, there is no such thing as THE price for a forex pair - there are always two prices - the price the broker quotes for you to sell (the bid price) and the price the broker quotes for you to buy (the ask price). The ask price is always higher than the bid price and the difference is the spread.
When you open a short trade, the way you close this is by paying the ask price (“buying”). So, if you open a trade at a given bid price, to get a profit you would have to wait for the ask price to fall below the bid price you paid at the entry point.
