Spreads and Profits

Hi. while i was using demos a long time i always learn something new everyday. i didnt notice till recently that lets say i come in at 1.555 with a fixed 3 pip spread. that means i have to make at least over 1.558 or above to make a profit. now lets say ive gained 43 pips would my broker just keep the 3 pips. or would it multiply as i keep gaining? 43 pips by 10:1 = $40 gain after i take off the 3 pip spread.? ive read something like this somewhere but didnt tell me much info. how would it multiply if it does. or is it a one time only?

Good to put your effort to learn forex man its all the matter of practice. What ever the trading station you are using you need to read out of its features before you use it.But the answer of your question is that these 3 pips spread is only for one time charge.Now I hope you will read the features of your demo trading station.
For the sake just let me know the features as well so I can publish over my newly launched website.:o

First, a correction. A pip is the 4th decimal place for all but the JPY pairs (at least among the majors), so in your example if you get long at 1.555 your breakeven would be 1.5553 (1.5550+0.0003) on the offer.

As for when the spread is marked against your position, it’s right away. Keeping with your example, if you have a 3 pip fixed spread and got long at 1.5550 then the bid/offer would be 1.5547/50. You bought at 1.5550, but because to exit you’d have to sell at 1.5547 you’re out the 3 pips right away. The market would have to rise to 1.5550/53 to get you back to level.

On the multiplying thing, the actual cost to you of the spread is dictated by your position size just like your profit/loss is. If you’re trading a full lot of EUR/USD then a 3 pip spread costs you $30. If you’re trading a mini then it’s $3.

Does this apply to a Pending Order. For instance, your order is to buy at 1.5560 with a spread of 3. Would it buy at 1.5557 or at the actual price of 1.5560?

You will buy when the ask hits 1.5560.