Jump to content

Widened Bid Price in Trade


Guest pipmum

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.

Link to comment
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. :)

Link to comment
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 ...

Link to comment

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

 

Link to comment
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. 

Link to comment
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!

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,638
    • Total Posts
      97,051
    • Total Members
      44,197
    • Most Online
      7,522
      10/06/21 11:53

    Newest Member
    Pricetime69
    Joined 06/12/23 19:27
  • Posts

    • I hold a small amount of CETUS on Kucoin. I aped in cos of its low mcap, solid fundamentals and ramped features. I may consider depositing some of it on Bitget to share from the reward. But first, i will look in to the requirements and all that. 
    • I use Bybit, Bitget and Binance. I like Bybit more for their derivatives, it has numerous pairs to choose from, I like Bitget more for its copy trading, low fees and high liquidity. I like Binance more for its P2P. 
    • Transiting into the crypto industry as a newbie and staying profitable even as a seasoned trader depends largely on users' choice of exchange. This is because these exchanges determine the safety of users' assets, accessibility, and general trading experience. I usually consider exchanges with the best security measures, convenience,  products, token availability and so on. I'd say the exchanges captured on the chart are the best exchanges right now in no specific order.
×
×
  • Create New...
us