Question Regarding Spreads

[aball6412]

Hi everyone,

I'm relatively new to forex, and have a simple question regarding spreads. I've been playing around with a new strategy that involves multiple take profit levels, but one thing that is hanging me up in regards to testing is how to deal with the spread. Let's say that I open up one long position and decide to take half of the position off of the table after however many pips, and the other half after a few more pips. Would I be paying the spread once, or twice in a trade like this?

I know that when entering a long position you pay the full spread immediately and don't pay it when you close. The opposite is true for short positions, correct?

Anyways, thanks for all of your help!

 

[SanMiguel]

Hi everyone,

I'm relatively new to forex, and have a simple question regarding spreads. I've been playing around with a new strategy that involves multiple take profit levels, but one thing that is hanging me up in regards to testing is how to deal with the spread. Let's say that I open up one long position and decide to take half of the position off of the table after however many pips, and the other half after a few more pips. Would I be paying the spread once, or twice in a trade like this?

I know that when entering a long position you pay the full spread immediately and don't pay it when you close. The opposite is true for short positions, correct?

Anyways, thanks for all of your help!

The spread is relative to the overall trade size.
Let's say your trade size is £10 per point with a spread of 2.
You pay £20 when you initiate the trade.
Actually the spread is only taken once but even if it weren't, when take 50% off, you would be taking of £5 per point at a spread of 2 = £10 instead of £20.

By the same rational you could enter 2 trades both a £5 a point 1 minute apart and pay the total, which is still £20 (£5x2 + £5x2).

 

[fihunts]

Something else you might consider is getting with an ECN broker where spreads are almost non-existent but you pay a commission. Mb trading and finfx are a couple I can think of right of the bat. Not sure if that might suit your purpose, but worth trying out on a demo account.

 

[Als]

Something else you might consider is getting with an ECN broker where spreads are almost non-existent but you pay a commission. Mb trading and finfx are a couple I can think of right of the bat. Not sure if that might suit your purpose, but worth trying out on a demo account.

i run demo of finfx

looks good

but finland has no broker service regulation as i know

and reliability of company is still in question

have you tried it live?

any info about company background?

thanks in advance