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Can someone explain?
May 03, 2024 at 21:12
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4 Replies
May 03, 2024 at 21:12
(edited May 03, 2024 at 21:19)
Hi FX.
I’m a new trader, still learning but I do not understand one thing that happened to me. So I was in a Short position as shown in the picture and I was viewing in 5m timeframe. Now while the candlestick was dropping down I was around +6€, the moment another candlestick appeared in the chart it kept going lower than the previous candlestick, but my +6€ profit dissapeared, it said I’m only +1.02€ in profit.
I’m a new trader, still learning but I do not understand one thing that happened to me. So I was in a Short position as shown in the picture and I was viewing in 5m timeframe. Now while the candlestick was dropping down I was around +6€, the moment another candlestick appeared in the chart it kept going lower than the previous candlestick, but my +6€ profit dissapeared, it said I’m only +1.02€ in profit.
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May 05, 2024 at 06:00
viggi posted:
Hi FX.
I’m a new trader, still learning but I do not understand one thing that happened to me. So I was in a Short position as shown in the picture and I was viewing in 5m timeframe. Now while the candlestick was dropping down I was around +6€, the moment another candlestick appeared in the chart it kept going lower than the previous candlestick, but my +6€ profit dissapeared, it said I’m only +1.02€ in profit.
As per the above, check spreads. XAUDEUR will have wider spreads on a % ATR basis compared to say XAUUSD.
To view the spread, on a desktop MT4 version, right click your chart, go to properties --> options --> View bid & ask prices. You'll see the spread in real time when the markets are back open.
Mottos are corny. Just find an edge, test it rigorously and trade it.
May 05, 2024 at 22:04
Spreads can be both variable or static when markets are open, it just depends on the type of broker and the instrument being traded. Lot size entered with a trade entry in general shouldnt effect the spread. Spread is only a bid/ask price differential + additional broker spread widening as brokers generally get commission from this if the account isn't ECN-style. As an analogy it's like a house auction; the vendor wants to sell it for $1m, and a buyer wants to offer 900k. The spread here = 100k. If the real estate agent (broker) charges a fee on top of 50k, then the spread might become 850k becauae this fre becomes part of the transaction.
Mottos are corny. Just find an edge, test it rigorously and trade it.
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