Penalized for not fullfilling Limit Orders?

Hi,
Today is my first day trading on a demo account.

I had an open market Order to buy at 1.7432, but I bought at 1.743 instead. I didnt have enough equity to buy at 1.7432 and so when the price got there i heard a DING and i noticed my funds was cut down buy about 6pips. Are you penalized for making an order and not being able to fullfil that order?

Thanks,
Dennis

Did you cancel the Open Market Order?

I Tried to, but i didnt see an option so I assumed you couldnt, so no. I did not cancel the order. I am using DealBook FX2

Q,
1) What is GFT [dealbook] spread on GBP/USD?


2) Are you sure you didn't just open a 2nd position?

- I don't understand question 1. (I don't know too much, im still learning)

- I'm positive, It charged me. (monopoly money ofcourse)

It's been quite a while since I demo'd Dealbook so I'm going by memory here. But if it serves me correctly, their spreads are similar to one of the Br_kers I use.

The spread is the difference between the Best Bid to Buy and the Best Offer to Sell.

On one of my accounts {not dealbook} the GBP/USD closed @ Bid 1.7432 - Ask 1.7437 so the spread is 1.7437-1.7432 = 0.0005 {or 5 pips.}

To help you understand.
Lets say you decide to Buy 1 GBP/USD @ 1.7432 but click Sell by mistake. UhOh. You realize your mistake and immediately Click to Buy 2 GBP/USD {1 to close the mistake and 1 to Open your Long Trade} The price has not changed. It's still sitting at Bid 1.7432 - Ask 1.7437.

You have just closed a losing trade in the amount of 5 pips {0.0005} the difference between Bid and Ask.
Why?
Because you Sold it to the guy that was willing to pay the Most {Best Bid} which was 1.7432 and then bought it back at the Best Offer which was 1.7437. You Bought High and Sold Low. Not Good. [btw. that other guy is your br_ker]

Put another way. The moment you open a trade, you are immediately Down the Spread. No matter whether you go Long or Short. That is why Br_kers advertise how tight their Spreads are.

So, when you are looking at a trade that you think might get you 10 pips, you have to consider the spread will cost you 5 of them and then decide if it is worth the Risk.

Hope it helps.

ps. as long as you consider it 'monopoly money' you will not be ready to go with 'real money'