What if the broker spread changes while you are holding a position?

gomoov

Tham gia từ May 22, 2012 23bài viết

Jul 24, 2012 at 03:54

Tham gia từ May 22, 2012 23bài viết

Hello People,

I have a question about the broker spread.

Let's say the current broker spread is 2, and you entered a position at that point.
You are holding the position, but the spread changed to 5 for some reason.

1) Then what happens if I close the position when the spread is 5?

2) If you had a stop-loss order 3 pips below, would you be stopped out?

Can anyone please clarify these with some explanation of general procedure how FX trading occurs? (bid, ask etc)

Thank you!!

ASB

forex_trader_28881

Tham gia từ Feb 07, 2011 691bài viết

Jul 24, 2012 at 12:45

Tham gia từ Feb 07, 2011 691bài viết

1. You'd pay more than double the cost than normal.

2. Yes - spread will kick you out.

TheLastBear

Tham gia từ Jul 03, 2012 178bài viết

Jul 26, 2012 at 09:01

Tham gia từ Jul 03, 2012 178bài viết

gomoov, you posted the same question already, the answer doe snot change.

Pax puts the X in Forex.

skiilodge

Tham gia từ Jul 17, 2012 5bài viết

Aug 04, 2012 at 11:45

Tham gia từ Jul 17, 2012 5bài viết

the spread will not always stay the same unless you have a fixed spread broker. the thing is this. if you are buying at a support level or selling at resistance then the variance in the spread will not affect you in that matter. it will just be the cost per trade if you were to enter at the higher spread.

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What if the broker spread changes while you are holding a position?