Jump to content

Widened Bid Price in Trade

Recommended Posts

Hello,

I thought I had found a good trade -

At the close last night I was £8 in profit  (trading at 10p /pip).  

 

This morning the spread has widened 63 pips and where I should be seeing a profit on 400 pips I am down -£15.

400 x 0.10p  = 40.  I should be up £40.   

 - How can I be 400 pips away from my entry point in the right direction, but £15 down?

 

I had always assumed that the Bid/Selling price on entry stood, even if the spread did widen afterward?

 - will the spread size reduce through the day?  

- should I close the trade, and cut my losses?

 

I will be grateful for any insight / thoughts and experiences.

 

Thank you.

Share this post


Link to post
On 25/10/2019 at 10:32, pipmum said:

Hello,

I thought I had found a good trade -

At the close last night I was £8 in profit  (trading at 10p /pip).  

 

This morning the spread has widened 63 pips and where I should be seeing a profit on 400 pips I am down -£15.

400 x 0.10p  = 40.  I should be up £40.   

 - How can I be 400 pips away from my entry point in the right direction, but £15 down?

 

I had always assumed that the Bid/Selling price on entry stood, even if the spread did widen afterward?

 - will the spread size reduce through the day?  

- should I close the trade, and cut my losses?

 

I will be grateful for any insight / thoughts and experiences.

 

Thank you.

Hey @pipmum

Thanks for your post. The spreads for different markets can tighten and widen throughout the day. When you open a long position you're opening on the Ask price, when closing you're using the Bid price and have to base your profit/ loss off that. 

The spread size for shares, for example, would be the underlying market image.pngspread plus IG spread. So, if the underlying market widens, then we have to reflect that on our side. You can change the prices on the platform to bid and ask by right clicking the chart> Prices> Ask/ Mid/ Bid. 

 

If you have a market in mind, let me know so I can investigate the spread at that time. :)

Share this post


Link to post
On 25/10/2019 at 10:32, pipmum said:

- will the spread size reduce through the day?  

- should I close the trade, and cut my losses?

 

I will be grateful for any insight / thoughts and experiences.

 

The spread will eventually become more favourable if you hold on - an extreme spread is usually temporary ...

Share this post


Link to post

Hi,

Thank you for your replies.

The screenshot below shows my SELL trade - placed 24 Oct 2.50pm.

The measurement 154 pips is my +£15 at close Thurs; and 213.3 beneath is the opening Fri 9am. I was in a loss of -£40,  as the Spread was 63 pips wider. Price was volatile and stalled for 3 hours Fri morning.

The red line shows my entry and exit.  I closed out at -£11 eventually - cut my losses. 

I think I may have bitten off more than I can chew with this one!

524480952_2019-10-29(31).thumb.png.6c0725f2e22d27883a88fb8ad77a22ff.png

 

Share this post


Link to post
12 hours ago, pipmum said:

Hi,

Thank you for your replies.

The screenshot below shows my SELL trade - placed 24 Oct 2.50pm.

The measurement 154 pips is my +£15 at close Thurs; and 213.3 beneath is the opening Fri 9am. I was in a loss of -£40,  as the Spread was 63 pips wider. Price was volatile and stalled for 3 hours Fri morning.

The red line shows my entry and exit.  I closed out at -£11 eventually - cut my losses. 

I think I may have bitten off more than I can chew with this one!

524480952_2019-10-29(31).thumb.png.6c0725f2e22d27883a88fb8ad77a22ff.png

 

Hey @pipmum

Thanks for your response. All US stocks trade in the pre, main and post markets. The main sessions is between 14:30- 21:00 (UK time) (*due to the clock change it's 13:30-20:00 for this week).

We offer 'All sessions' for some stocks on our platform. In the pre and post market you will see that the spread is a lot wider than in the main sessions because there are less buyers and sellers trading at this time. We have to follow the underlying market so the spread you see is the market price (with our spread wrapped around if you're trading on a spread betting account). 

I hope this helps. 

Share this post


Link to post
46 minutes ago, CharlotteIG said:

Hey @pipmum

Thanks for your response. All US stocks trade in the pre, main and post markets. The main sessions is between 14:30- 21:00 (UK time) (*due to the clock change it's 13:30-20:00 for this week).

We offer 'All sessions' for some stocks on our platform. In the pre and post market you will see that the spread is a lot wider than in the main sessions because there are less buyers and sellers trading at this time. We have to follow the underlying market so the spread you see is the market price (with our spread wrapped around if you're trading on a spread betting account). 

I hope this helps. 

Hi CharlotteIG,

Thank you for your reply, yes it helps.  

I will try not panic if the spread widens outside the trading session next time  - all part of my learning curve!

  • Like 2

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Member Statistics

    • Total Topics
      11,569
    • Total Posts
      58,861
    • Total Members
      77,917
    Newest Member
    LeeStubbs
    Joined 15/07/20 04:46
  • Posts

    • Bit of useful information for ya all I did 10 experiments using  the barchart.com over last few months . Ran 2 equally weighted portfolio's  (swing trades <1 week)  10 long positions in one and 10 short positions in another . The stocks were taken at random from their screener, only ones with med - high vol and only ones with a 100% BUY / Sell  on a 'BarChart Opinion' etc  https://www.barchart.com/uk/stocks/signals/top-bottom/top?viewName=main&timeFrame=daily Time frame 1 week, Mon to Fri  Risk / Reward 1: 1.5, stops usually 1 Daily Standard deviation  Results: nothing more than random! 0.45% from memory  Sure I could have fiddled about with limits stops, portfolio weights  etc  but it nothing convinced me that there is any evidence to pursue expert screeners  
    • I have finally got over that psychology issue. I never move stops now except  the odd time in the direction of the trade, to lock in profits (BE). I never risk more that 0.5% on a trade and keep risk /reward to about   1:1.5 I have read a heck of a lot now and follow accepted advice. 20 trades , same strategy , sensible stop say at 1 - 1.5  ATR / 1 BB  or a obvious support and resistance line I don't revenge trade, never get over confident ,screenshot every trade  and keep a detailed log and analyse every trade with notes.  *** HOWEVER The problem is quite simple,   its just not working, I am on a 5th loss in a row on MACD and 200MA , trading in the direction of the trend, using multiple time frames       looking at my logs I tend to agree with this now. I get the initial direction right more that 50% of the time but once i passes the 1:1 , the odds decline rapidly I would only move a stop if the trade moved rapidly, Like a manual trailing stop.  
    • Dropping a short every 15 points could be a good strategy 😜👌 profit takers can’t help them selves lol 😂 
×
×