Did you do your homework?
If the tradecost is $2 (spread+commission), and the effective offset (just by bid-price-to-new-bid-price comparision) is $10, then;
"If I trade long or short, and I win, I will have made $8"
"If I trade long or short, and I loose, I will have lost $12"
To say it another way: "If the price has moved up or down x pips looking at the bid line (where x is equal for up as well as down), if my trade was right, I will have made "offset - tradecost" whereas if my trade was wrong, I will have lost "offset + tradecost". "
Or, to say it yet another way:
win: profit+=(offset-tradecost);
loose: profit-=(offset+tradecost);
True or false?
If the tradecost is $2 (spread+commission), and the effective offset (just by bid-price-to-new-bid-price comparision) is $10, then;
"If I trade long or short, and I win, I will have made $8"
"If I trade long or short, and I loose, I will have lost $12"
To say it another way: "If the price has moved up or down x pips looking at the bid line (where x is equal for up as well as down), if my trade was right, I will have made "offset - tradecost" whereas if my trade was wrong, I will have lost "offset + tradecost". "
Or, to say it yet another way:
win: profit+=(offset-tradecost);
loose: profit-=(offset+tradecost);
True or false?
Not financial advice. For testing purposes only. Do not use on live account