Friends, I am having some basic doubt in forex. Can someone please explain - I wanted to punch a sell stop order under that candle. The low of the candle was 0.68194 If I want to place a sell stop order less the spread value then what will be the order ??? If the spread is : attached picture .... what would be my sell stop order .... Pics attached Thanks {image} {image}
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Conventionally, the recorded low price will be the lowest bid price touched (and, equally, the high will be the highest offer price touched) so it includes the 7 tick spread already. Thus, if the low bid is quoted at 0.68194 then 0.68193 would be a sell stop order one tick below.
But best to check with your quote provider on what basis they are quoting OHLC data, just to be sure. Some do use a mid-price basis so you'd have to subtract 3.5 ticks from the quoted low to get the true bid low touched; and add 3.5 ticks to the quoted high to get the true offer high touched.
{quote} Conventionally, the recorded low price will be the lowest bid price touched (and, equally, the high will be the highest offer price touched) so it includes the 7 tick spread already. Thus, if the low bid is quoted at 0.68194 then 0.68193 would be a sell stop order one tick below. But best to check with your quote provider on what basis they are quoting OHLC data, just to be sure. Some do use a mid-price basis so you'd have to subtract 3.5 ticks from the quoted low to get the true bid low touched; and add 3.5 ticks to the quoted high to get...
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Thanks a lot ...
So what is that 5th decimal for ? Is it also included as a spread or is it the actual spread ?
So I will sell @ 0.68193 ( that is close to 1 pip down as spread is 0.7 pips ) Am I right ?
Thanks for taking your time and explaining ..
The One Who Makes The Thunder Roar Also Hears A Butterfly Sigh - Ruzbeh
{quote} Thanks a lot ... So what is that 5th decimal for ? Is it also included as a spread or is it the actual spread ? So I will sell @ 0.68193 ( that is close to 1 pip down as spread is 0.7 pips ) Am I right ? Thanks for taking your time and explaining ..
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1) The 5th decimal is just 1/10ths further division of the 4th decimal, it gives the 'full' quote if you like, the 5th decimal being the smallest unit by which price can change.
2) The way I read your quote shown 0.68050 - 0.68057 I just say the spread is 7 ticks (think 50-57). You are calling it 0.7 pips of the last 'big' decimal (thinking 5.0-5.7). Comes to the same thing, whichever you prefer.
3) If you place a sell order at 0.68193 you should be filled if the bid touches that price, being the minimum possible 1 tick (5th decimal) below the low of the bar in question.
It can all be very confusing; you just have go through it all carefully. Always take care to check you are dealing at the right price, in the right size, and in the right direction that you want before you hit the button. It's so easy to get something wrong and that can be costly. Remember the moral used by carpenters: measure three times, cut once!
Best of luck. (PS - love your strapline!)
{quote} 1) The 5th decimal is just 1/10ths further division of the 4th decimal, it gives the 'full' quote if you like, the 5th decimal being the smallest unit by which price can change. 2) The way I read your quote shown 0.68050 - 0.68057 I just say the spread is 7 ticks (think 50-57). You are calling it 0.7 pips of the last 'big' decimal (thinking 5.0-5.7). Comes to the same thing, whichever you prefer. 3) If you place a sell order at 0.68193 you should be filled if the bid touches that price, being the minimum possible 1 tick (5th decimal) below...
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Thanks a lot for your reply and time ....
The One Who Makes The Thunder Roar Also Hears A Butterfly Sigh - Ruzbeh
{quote} Conventionally, the recorded low price will be the lowest bid price touched (and, equally, the high will be the highest offer price touched) so it includes the 7 tick spread already. Thus, if the low bid is quoted at 0.68194 then 0.68193 would be a sell stop order one tick below. But best to check with your quote provider on what basis they are quoting OHLC data, just to be sure. Some do use a mid-price basis so you'd have to subtract 3.5 ticks from the quoted low to get the true bid low touched; and add 3.5 ticks to the quoted high to get...
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particularly before starting trading , we consider this stock exchange as a casino and try to bring profit very rapidly without learning , but in practical there is no short cut way of earning and success in long time process in here.
