so basically I open a position on the Exotic Pair EUR/NOK, and I know that spread had probably a lot of influence the outcome and result of the operation ( even more with exotics ). Still, im with a lot of doubts in this specific point, and this particular operation.
I attach a picture of the pair in TradingView, and I write there what did happen, so it will help you(and me) to fully understand what im trying to explain. Basically my doubts are:
-I define the Stop Loss at price 9,94338(*1), but the operation was automatically closed at 10,07299 (*2) a price that tottally were in a secure “trading zone”. So, there were anyway for me to “discount” the spread before define the Stop Loss limits?
Any book, tutorials, advices that you could give me to better deal with this?
OK. But how did you calculate it was 0.1% of the account? I don’t understand how you know this.
(FYI by the way I am spreadbetting forex in the UK, so when I open a trade I can state the margin required as a percentage of the account capital, and I can state the capital at risk if the stop-loss is hit as a percentage of account capital. But I can’t state the size of the position directly.)
Tommor, i use PSC-trader script on Metatrader, i had only one position open ( this one) , and pre-define to use not even 1%, but 0,10% of my balance as risk. I see that probably you’re not talking about this right? Im still learning, so i appreciate if you could explain me better this last part, or indicate me good links to learn it. thank you!
As I read my platform, the stop-loss risk does not tell me the size of the position, nor the margin that this position would require.
For example, I could open two long positions on EUR/USD, both at £1 per pip. Both would require the same available margin. But I could set the SL on one to risk 0.1% of my account and the other to risk 10.0% of my account. The margin required to open both would be identical. Of course if the capital available to be used as margin drops far enough in a losing position the broker automatically and immediately closes the position, regardless of where I set the SL.
Its possible your margin available was insufficient as price moved against you and unrealised loss increased. Note that charts are normally set to show the bid price, but also that the bids quoted are not always 100% represented on the chart. The broker will tell you their charts are indicative only. This means that if price spiked momentarily to hit your SL, this would trigger the exit order but might not be represented on the chart.
Thank you Tommor, I see you understand and study well the margins. Could you plz advice me where could i learn this for good? I already saw 2 or 3 different things, but im still struggling to fully understand that part. Appreciate!
I understand what do you mean, already felt that in a lot of things while making my strategy. Thanks anyway! Just for curiosity, do you live from Trading? A lot of years to get there?
