Went long on GBP/USD, price spiked, I’m getting negative P/L. Price goes higher, I get an even worse P/L. (I’m not shorting.) What’s happening? Why’s the sell price lowering so drastically?
I’ve had a few pints, but I think GBP/USD is the forex ticker for buying GBP from USD.
You started with a rate of 1.37441, and its now at 1.37103(cheaper), so you’re paying a higher price hence in a loss.
It is the spread.
The spread is at its widest between 9 and 11 pm GMT
Why does it then show on the graph as well as indicated by the green arrow that I’m in profit… confused… but also clueless, so most likely you’re right xD
No I think Alien is more right re spread.
It seems that the screenshot you have provided shows the Buy price, while the relevant price for closing the long position is the Sell price. There is an upward spike in the Buy price of GBP/USD and conversely, there is a downward such in the Sell price at the same time, which leads to lowering the result of the open positions.
Such spikes and spread widening are common with Forex pairs in these hours.
In summary, I need to get better at trading xD
It’s crazy! I probably didn’t understand it but, how does it make sense for the buy price and sell price to move in opposite directions? xD Insane!
I’ve got more studying I need to do!
Thank you all for your answers, I’ve gotten 0.0000000000000001% better.