Do i pay the spread too?

[cashmoney69]

on gbp/usd I pay a 4 pip spread or 40.00... so out of 10 pips, i make 60.00..simple.

but how does the spread affect a losing trade?.. If i'm down 3 pips and want to get out, would I still get charged the additional 4 pips to get out of a losing trade to a total loss of 70.00?

cm

 

[Lucrum]

Unless your trading at one of the ECN's you'll buy at the ask and sell at the bid every entry and exit, winning or losing.

 

[late apex]

Another way to think about it is this: the moment your entry order is filled, you start out in the hole / down 4 pips, at that very moment. That figure (negative spread value, here -4 pips) remains part of your Unrealized P&L throughout the duration of the trade. When your exit order is filled, that figure becomes part of your now Realized P&L for the just closed trade.

That perspective might help you become more keenly aware of the true R/R ratio of short-term / short-distance trades, much worse than the apparent R/R rario at first glance (when the hurdle to overcome is a 4-pip spread). "Worse," as in -- much higher % win rate needed to break even or better.

TP ... SL ... apparent R/R ... true R/R ... true / apparent

6 ....... 6 ....... 1:1 ....... 5:1 ........ 5
6 ..... 14 ..... 0.43:1 ..... 1:1 ..... 2.33
14 ..... 10 ..... 1.4:1 ..... 3:1 ..... 2.14
24 ..... 32 ..... 0.75:1 ..... 1:1 ..... 1.33
100 ..... 50 ..... 2:1 ..... 2.26:1 ..... 1.13

Note the trend in the last column as your TP and SL increase.