questions about limit orders
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Thread: questions about limit orders

  1. #1
    I have an account with oanda and have a question bout limit orders.

    Let's say I short gbp/usd at 1.89850 at 1000 lots which is 10 cents/pip. .
    I wish to liquidate half that at 1.89750 (100 pips).

    So when I buy 500 lots at 1.89750, does my profit reveal 10$? Or does disperse and other things get in the way?!?!?

  2. #2
    Quote Originally Posted by ;
    I have an account with oanda and have a question bout limit orders.

    Let us say I brief gbp/usd in 1.89850 in 1000 lots which is 10 cents/pip. .
    I wish to liquidate half of that at 1.89750 (100 pips).

    When I buy 500 lots at 1.89750, does my profit reveal 10$? Or does spread and anything else get in the way?!?!?
    Hello ,

    First, drop the zero from the ideal side of your prices. GBP/USD just includes four decimal places. Having done that, then 1.8985 - 1.8975 is just a reversal of 10 pips, not 100. Your profit will be on a 1000 unit lot.

    Spread always gets in the way. I really don't know what spread Oanda provides on GBP/USD, but assuming it is 3 pips, then price would have to move 13 pips in order for you to get the $1 profit. If you enter a trade, you are instantly in the hole by the amount of the spread. Price would have to transfer three pips in your favor simply to get one to breakeven. Any additional movement in your direction would yield profit. S O 3 pips to regain the spread and 10 pips to earn a dollar = 13 pips.

    Should you shut half your position following this 13 pip proceed, then your profit will be 50 cents.

    Dial

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