Spread and demo account

[zerocafeine]

hello every one,

 

on EUR/USD in demo account, I open a position with a limit order and close the position with a limit order a few minutes later at the same entry and exit price, why don't I pay a spread in the demo account?

 

Example I bought at the price of 0,85960£ and I resold at the same price, that makes me 0£ until there all is normal, but why I did not pay of spread?

 

Best Reguards
ZeroCafeine

[OfentseIG]

On 09/01/2023 at 19:03, zerocafeine said:

Hello and happy new year,

 

still no answer

Hi @zerocafeine

Thanks for reaching out and we apologize for the delay in responding to you. You automatically pay spread when you open a position. At the time of opening, the bid and ask price are different. For example, if you are trading a short position on EUR/USD and open at a price of 10773.2 as shown below, you would have already paid 0.3 spread as it is already included in your opening price. Therefore, same principle applies when you close. Assuming the market goes down and the ask price drops from 10773.8 to 10773.2 and you decide to close, you would have paid 0.3 spread at the closing price. In total, you paid the full spread of 0.6

Your profit/loss is calculated as

(Closing price - Opening price)x size 

Since your opening and closing price are the same, profit would be zero. 

All the best, OfentseIG

[zerocafeine]

Hi everyone

 

I hope that someone will be able to answer me and give me a clear answer, I called for example the technical service of IG and I recorded the call in French and the explanation is a bit far-fetched, the interlocutor was not able to give a precise example with figures, he was contradicting himself

 

Best regards 

[zerocafeine]

Hello

 

Is there any support here please on this forum?

 

Best Reguards
ZeroCafeine

 

 

[zerocafeine]

Hello and happy new year,

 

still no answer

[OfentseIG]

On 09/01/2023 at 19:03, zerocafeine said:

Hello and happy new year,

 

still no answer

Hi @zerocafeine

You can use this link for more clarity on how spread is calculated. https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-is-the-cost-of-placing-a-spread-bet

All the best, 

@OfentseIG