Hi Guys.
Might be a newbie question but I've had a search around and can't find any obvious answer..
On my SpreadCo demo account, the spread for EURUSD is 0.2 (yeah, they really love fooling the demo account users with ridiculously low spreads lol). However, it seems like my trades only get impacted with half of this.
For example, last night I was betting £50 per point. I went long and the price moved up a total of 1 point. Then I sold. Because of the 0.2 spread, this trade was a gain of 0.8 points which shows up correctly on my statement:
Buy @ 1.44111
Sell @ 1.44119
I would expect to have made £40 on this trade, however, I actually made £45, which to me, implies that a spread of only 0.1 was applied.
This assumption works with 100% of all other trades I've done on EURUSD with this account.
Another example was where the price moved down 0.5 points. This should've been a loss of £35 after the spread has been added, but showed up as a loss of only £30.
Is this a special characteristic of Forex spread betting as opposed to spread betting regular stocks? I read somewhere something about Forex charges only being applied on one side of the trade or something but it wasn't explained very clearly.
Any help appreciated.
Thanks
-Mike-
Might be a newbie question but I've had a search around and can't find any obvious answer..
On my SpreadCo demo account, the spread for EURUSD is 0.2 (yeah, they really love fooling the demo account users with ridiculously low spreads lol). However, it seems like my trades only get impacted with half of this.
For example, last night I was betting £50 per point. I went long and the price moved up a total of 1 point. Then I sold. Because of the 0.2 spread, this trade was a gain of 0.8 points which shows up correctly on my statement:
Buy @ 1.44111
Sell @ 1.44119
I would expect to have made £40 on this trade, however, I actually made £45, which to me, implies that a spread of only 0.1 was applied.
This assumption works with 100% of all other trades I've done on EURUSD with this account.
Another example was where the price moved down 0.5 points. This should've been a loss of £35 after the spread has been added, but showed up as a loss of only £30.
Is this a special characteristic of Forex spread betting as opposed to spread betting regular stocks? I read somewhere something about Forex charges only being applied on one side of the trade or something but it wasn't explained very clearly.
Any help appreciated.
Thanks
-Mike-
