NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. TESTIMONIALS: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.ĬFTC RULE 4.41 - HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.
Past performance is not necessarily indicative of future results. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading.
Risk capital is money that can be lost without jeopardizing ones financial security or life style. An investor could potentially lose all or more than the initial investment. RISK DISCLOSURE: Futures and forex trading contains substantial risk and is not for every investor. By looking at Cost/Lot, the trader can see immediately his instant loss if buying one lot of the base currency. The same logic applies to other timeframes.Ī usual rule is not to buy if the spread is bigger than 25% of the actual timeframe’s range. On the first case, the spread is 1% of the daily range, while in the former case it’s 2% of the daily range. Looking at the spread proportionally to the average range is important because it allows analyzing the RELATIVE costs: for instance, a 4 pips spread in a currency that moves 400 pips daily, is actually cheaper than trading a 2 pips spread in a currency that moves just 100 pips daily. If the spread is high, traders should wait for it to come down and only then open a position.īy using the Spreads Indicator, a trader can see the current spread in points and its proportion relative to different timeframes. The values of the Spreads Indicator tell traders if it is a good time to trade the currency pair, in case the spread is low. Color based system according to the cost level.Presents the spread value as a percentage of the average range in different timeframes.Automatically calculates the cost per lot in the chosen currency (instant loss).
The spread can also be seen as the instant loss that occurs when entering a position. Naturally, the ask price is always higher than the bid price, and the difference between them is called the spread. The bid price is the price a trader is willing to pay while the ask price is the price a trader is willing to accept. The Spreads Indicator for MT4 (Metatrader 4) shows the difference between the bid and ask price of a currency.
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