I am using a Forex.com practice account to learn to trade. I am super confused as to how the spread actually works.
Forex.com advertises they have a 5.9 pip spread for the EUR/USD
However, I noticed last night and just a few moments ago when I put in a trade that I am starting at least -14 pips in the hole
I placed a sell at 1.16536 in MT4, the price right after dropped to 1.16521. This was in my calculation 15 pips of movement. Now if the spread was only 6 pips, couldn’t I have closed the trade with a profit of 9 pips?
Instead of closing the trade I left it open and the price has now moved back up to 1.16548, my entry was 1.16536. This is a difference of 12 pips, if its a 5.9 pip spread I should be -18 pips. Instead I am seeing I am down 30 pips.
I could just be entirely wrong and confusing points with pips. On an old platform I once called GTSPRO the spread was literally just what it said, and it made trading pretty simple. If this is accurate and I’m going to need a trade to move 15 pips in my direction before I can begin to make money, I have no clue how I could make money of this. Could someone please help me out with this?
edit The price has now moved down to 1.16514 and its showing me that I am just now breaking even… How in the world could a trade I placed at 1.16536 be just breaking even at 1.16514?