Short selling
Short selling
24 Aug 2019, 07:03
When you sell, if you enter with either the bid or the ask price (sell stop), and even if you set stop loss to close on bid price, does the position still (always) calculate with the ask price... so if my SL is 30pips.. and its supposed to close when the bid hits it,, will i end up with like 32pip SL due to spread.. If yes, How do I have my sell trades calculate with the bid price.. (not possible? lol)
In other words, Is it possible to have my take profit filled by the bid on a short position?
Replies
matt92
26 Aug 2019, 20:59
RE:
Panagiotis Charalampous said:
Hi Matt,
No this is not possible. Sell orders open on the Bid price (somebody bids a price for the asset and you sell) and close on the Ask price (somebody asks a price for the asset and you buy).
Best Regards,
Panagiotis
Yes, but If i change the "arrow" in settings under quick trade, for stop loss, from stoploss will be triggered by bid price for buy positions and ask for sell positions, TO stoploss will be triggered by ask price for buy positions and bid price for sell positions, Will I lose more than 30pips if thats what stoploss is set to, since the position is still being calculated by the ask price (for sell positions)
@matt92
PanagiotisCharalampous
27 Aug 2019, 09:55
Hi Matt,
If you change the trigger side e.g. set Ask for Buy, stop loss will be triggered by the Ask price but the deal will be executed on the Bid price, since it is a Sell deal. So the answer is yes, you will probably lose more than you expect.
Best regards,
Panagiotis
@PanagiotisCharalampous
PanagiotisCharalampous
26 Aug 2019, 11:42
Hi Matt,
No this is not possible. Sell orders open on the Bid price (somebody bids a price for the asset and you sell) and close on the Ask price (somebody asks a price for the asset and you buy).
Best Regards,
Panagiotis
@PanagiotisCharalampous