Hi,
The intraday forex charts that my broker (thinkorswim) provides me are all based off of the bid price. While this works fine if I am long a position, If I take a short position, I noticed that all of my stops and targets are incorrect due to the spread, as I base them off of the charts. Targets get hit late, and stops fill early.
I was wondering, is this common amongst brokers, and if so, what is the strategy that people use to appropriately adjust their stops and targets? I try to take half of my position off of the table at 1:1 (ala DIBS method). If I am short, my range gets squeezed considerably so as to meet this reward/risk criteria. Should I just adjust the stop/target to work with the same size range, or should I keep what my chart says and trade with a squeezed range.
If this is confusing, I can try to clarify with a chart. Thanks!
The intraday forex charts that my broker (thinkorswim) provides me are all based off of the bid price. While this works fine if I am long a position, If I take a short position, I noticed that all of my stops and targets are incorrect due to the spread, as I base them off of the charts. Targets get hit late, and stops fill early.
I was wondering, is this common amongst brokers, and if so, what is the strategy that people use to appropriately adjust their stops and targets? I try to take half of my position off of the table at 1:1 (ala DIBS method). If I am short, my range gets squeezed considerably so as to meet this reward/risk criteria. Should I just adjust the stop/target to work with the same size range, or should I keep what my chart says and trade with a squeezed range.
If this is confusing, I can try to clarify with a chart. Thanks!