Why does the profit immediately change to negative every time I open a position in Gain Capital?

Broker review
Y
yuri wijayanto
20 Jan 2012, 08:45 4,311 Views

I have been using a demo account at gain capital for 3 months, every time I open a position in the profit column, it immediately decreases by 14, is that normal?

2 Answer

R
Rachmat 20 Jan 2012, 07:51

Okay Mr. Yuri,

Every open position will usually go negative immediately because of the reduction from the spread cost.

To our knowledge, gain capital directs to forex.com broker in terms of platform. GAIN Capital Group LLC, is a leading independent provider of forex trading services. Founded in 1999 by Wall Street veterans.

Currently, online forex brokers generally do not charge other fees/commissions, other than the spread of the pair we are trading. For example, EUR/USD is 2-4 Pips. Now in this matter, it needs to be asked again whether the minus 14 is in pips or in dollars, because 1 pip can have different values depending on account settings/lots etc. And also for what pair? Pairs that are not major (cross/exotic/gold etc.) have wider spreads

Hopefully this can help

E
erik tri cahyo 22 May 2019, 22:08

To Yuri Wijayanto,

That is caused by the existence of the spread. Spread is the difference between the buy and sell price set by the broker. Therefore, when you open any position (whether it's buy or sell) you will immediately experience a loss equal to the established spread. You can read more about spread here: What is Spread?

Hopefully this helps.

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