Cant believe after so many years trading I don't get this straight. Can somebody please help to clarify the Bid and Ask price in the next scenarioAt 1 o'clock, the Bid for EU is 1.2000 and the Ask is: 1.2500. A long position is made at 1.2500. The disperse sent to the broker is 500pips. At 10 o'clock, the Bid price for EU is 1.3000 the Ask is: 1.3500. If the long position is currently shut, is it that the Ask or the Bid used to compute the profits?
In case Bid is used, then profits is ony 1.3000 - 1.2500 = 500pips; compared to 1000 pips when Ask price is used.
Hence the total spread sent to broker with this transaction is 500pips at receptive 500pips at close = 1000pips??? Mean I had to pay 2 times the spread for one order?
Thanks alot.