Newbie question--Spread and profit target | Forex Factory

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Newbie question--Spread and profit target

  • #1
  • First Post: Sep 15, 2008 12:27am Sep 15, 2008 12:27am
I have a question on something I was confused on. I am demo trading currently and have done it for a while but have never thought about something until now.

Today I made a trade, went short on EUR/CHF on OANDA demo. As soon as I was in the trade I was -40 meaning a spread of about 4 pips. Now my profit target was 10 pips. In a few minutes when I checked my TP got hit and I my P/L was up by 100 dollars. Now my question is, is that my net P/L or does that also include the 40$ spread? Because for me to net 100 dollars wouldn't the price have to go down by 14 pips (spread of 4pips + 10pip TP)?

Thanks for the help. By the way, the total P/L for my accoutn also went up by 100 dollars.
  • #2
  • Sep 15, 2008 1:13am Sep 15, 2008 1:13am
Quoting misterboy
I have a question on something I was confused on. I am demo trading currently and have done it for a while but have never thought about something until now.

Today I made a trade, went short on EUR/CHF on OANDA demo. As soon as I was in the trade I was -40 meaning a spread of about 4 pips. Now my profit target was 10 pips. In a few minutes when I checked my TP got hit and I my P/L was up by 100 dollars. Now my question is, is that my net P/L or does that also include the 40$ spread? Because for me to net 100 dollars wouldn't the price have to go down by 14 pips (spread of 4pips + 10pip TP)?

Thanks for the help. By the way, the total P/L for my accoutn also went up by 100 dollars.
No
As you as you do the trade the system revalues in real time.
So if you hit the bid in eur/chf immediately it works out your loss where you need to buy them back in your case 4 pip spread.
You put your T/P in and it was hit which is what you were looking at 10 pips.
position square... no spread.. ching ching.. well done
  • #3
  • Sep 15, 2008 2:08am Sep 15, 2008 2:08am
Quoting lasty
No
As you as you do the trade the system revalues in real time.
So if you hit the bid in eur/chf immediately it works out your loss where you need to buy them back in your case 4 pip spread.
You put your T/P in and it was hit which is what you were looking at 10 pips.
position square... no spread.. ching ching.. well done
Thanks a lot for that. That clears it up.
  • #4
  • Sep 15, 2008 5:21am Sep 15, 2008 5:21am
sori..
i want to ask,how about your s/L? do you use the sl? how many pips you pun into your sl?
sori with my broken english..thanks
  • #5
  • Last Post: Sep 15, 2008 12:04pm Sep 15, 2008 12:04pm
Quoting furious
sori..
i want to ask,how about your s/L? do you use the sl? how many pips you pun into your sl?
sori with my broken english..thanks

In this case i didn't use a stop loss actually. But I think a stop loss of 15 pips would do. Because right now I am just demo trading and trying to figure out if a SL of 15 pips would be too tight or not. In some cases I saw it would work but in some it goes against me 20 pips and then comes back to hit my target. As i get more and more into it I might increase my TP to 15 too. So that I get a 1:1 risk reward ratio.

Let me add something more, I trade this during the quiet hours. Considering that, a 15 pip SL might not be too tight after all.
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