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Forex Does the spread affect both buy order and sell order?

Discussion in 'Forex Forum' started by xjacks, Jul 23, 2018.

  1. xjacks

    xjacks Guest

    I did some search of spread but I still cannot understand how the spread is added to a quote price.

    Why I ask the question is because that, I did backtest of my trading system in fixed spread in MetaTrader 4/5, for example, the spread is 1.0 pip and my take profit is 25 pips, and I want to always keep the take profit at 25 pips in live account which is floating spread, so I need to recalculate the take profit like "TP - (LiveSpread - 1.0pip)". For example the current spread of live account is 1.4 pips, so my take profit should be "25 - (1.4 - 1.0) = 24.6".
    But I cannot be sure that if both my buy orders and sell orders need recalculate the TP, or just apply to one side?

    In another words, if a quote price is 1.41451, and the spread is set to 2 pips by broker, so the ask/bid is 1.41461/1.41441, or 1.41431/1.41451 ? If the latter is correct, the spread only affect the ask price or the buy order, so my TP of sell order don't need to be recalculated by spread.

    Thank you! And sorry for my bad English.

    Source.
     

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