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
      22,158
    • Total Posts
      93,069
    • Total Members
      42,559
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Guggs
    Joined 09/06/23 10:21
  • Posts

    • On this same topic, please, and following the example, where would I find the contract value for the May and June contracts? (in the context that at the time of the example the shorting was April) Thank you in advance.
    • Early Morning Call: CNH down as China CPI loses ground It is becoming more and more unlikely that China will meet its government target of average consumer prices at about 3% in 2023.  Jeremy Naylor | Analyst, London | Publication date: Friday 09 June 2023 09:06 Indices overview US equity markets ended the session higher, with the S&P 500 entering bull market. APAC indices mostly rose overnight. It is becoming more and more unlikely that China will meet its government target of average consumer prices at about 3% in 2023. On the contrary, the risk of deflation is a growing concern. China's consumer price index (CPI) rose 0.2% year-on-year (YoY), accelerating from a 0.1% rise in April, but missing the estimate of a 0.3% increase. Food price inflation, a key driver of CPI, slowed to 1.0% year-on-year from 2.4% in the previous month. On a month-on-month (MoM) basis, food prices fell 0.7%. China's factory gate prices fell at the fastest pace in seven years. May PPI fell for an eighth consecutive month, down 4.6%. Macroeconomics The end of the week is very quiet in terms of macroeconomic data. Investors are already focussed on next week, with two big central bank meetings to come. First is the US rate decision on Wednesday. Markets are pricing in a pause from the Federal Reserve (Fed). Ahead of the Fed decision though, markets will get an update on US inflation. The consumer price index, due on Tuesday, is expected to fall to 4.7% YoY, following a 4.9% rise the previous month. The focus will be on core CPI, forecast to fall to 5.4% YoY, from 5.5% in April. Since the March headline CPI figure is below core CPI, the market fears the spread between the two indicators could be widening. On Thursday, the European Central Bank (ECB) is expected to raise its key interest rates by 25 basis points, and again in July before pausing for the rest of the year. This is according to a poll conducted by Reuters which indicated that economists believe inflation across the single currency economies remains sticky. After 375 basis points (bp) of hikes over the past year, economic activity across the region has slowed, with Europe's biggest economy - Germany - and the eurozone as a whole falling into a winter recession. EVs General Motors announced it will adopt Tesla's North American charging plug standard. GM electric vehicle (EV) buyers will now be able to use the Tesla Supercharger network. A similar agreement had earlier been made with Ford which means now that three of the top EV sellers in the North American market have agreed on a standard for charging hardware. It could turn out to be a major win for Tesla, which invested heavily to deploy its fast-charging stations across North America. This agreement will have significant commercial and public policy implications. The Biden administration wanted to impose a rival "combined charging system". Now the alliance between Tesla, Ford and GM seriously challenges the White House's plans.   This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
    • A relatively quiet week is heading towards its end, after a positive session in Asia that followed the lead set by Europe and the US. A rise in jobless claims bolstered the view that the Fed would leave policy on pause at its next meeting. However, rate hikes this week in Australia and Canada have unnerved investors, and so caution could well prevail over the first half of next week. Given that the coming week also includes ECB and BoJ decisions, plus US inflation figures, it promises to be full of potential volatility flashpoints.   
×
×
  • Create New...