Open trade on a demo account

[Josh]

Hi , I am new here and still on a demo account. This has been happening to me all day for the first time, when I open long buy trades , it puts me in high minus straight away, even when the rate is above where I entered.can someone explain to me what’s happening here thanks. I have attached a screen shot . 
thanks

[OfentseIG]

On 17/03/2023 at 23:20, Josh said:

Hi , I am new here and still on a demo account. This has been happening to me all day for the first time, when I open long buy trades , it puts me in high minus straight away, even when the rate is above where I entered.can someone explain to me what’s happening here thanks. I have attached a screen shot . 
thanks

Hi @Josh

Immediately after opening your trade, you’ll notice that your position will start at a loss equal to the spread at the time you placed your trade.

Say you wish to purchase 1 contract of the FTSE 100 (1 contract is valued at £10 per point), and the full spread between the bid and ask price is 1 point.*

The spread cost of this trade would be 1 contract x £10 per point (value of the contract) x 1 point spread = £10

Therefore, your position would open at a loss of £10 to pay off spread. 

All the best, OfentseIG