Hello everyone
I had placed a trade on EURGBP last week.
I went short on this pair but it was on my demo account! I had set a take profit level, but even though the price hit my take profit level, I didn’t get my money?
Can someone explain to me how this is possible? The price reversed immediately after it touched my take proft level so could that be the reason? You can clearly see that the low of the last white candle touched my take profit level.
Thank you!
The price you are see on the chart is Bid price. Since you had a short position, your TakeProfit is effectively a buy and that occurs at Ask price, which is higher than the Bid price. Without knowing what the spread was at the time, you can’t know if the Ask price touched your TakeProfit.
Oh yea, you’re right! I forgot about that!! My bad, thank you!
We’ve all done it. The only trader who never made this mistake has never traded.
Onwards and upwards.
You would have to change the view from “bid” to “ask” and vice versa.
I’ve been there, too. Live and learn!!
My question is: what lesson did you learn from this, and how will you apply it to future trades?
Take profit doesn’t trigger when the price of the security does not reach the limit price. Make sure that you set the profit price in terms of absolute price change or as a percentage. In most cases, I use the simple formula:
Take profit = opening price + price change in points.
