Charting on the bid but buying on the ask
Posted: Sat Oct 31, 2026 8:59 pm
Every long entry pays the ask and every long exit receives the bid, so the position starts underwater by the spread. On a chart drawn from the bid, the entry looks like it happened at a price slightly lower than the real one.
This mismatch causes constant small confusion. A trade marked at the chart's closing price actually opened a bit higher. A target at a level on the chart needs the bid to reach it, which is exactly the chart's line, but the entry used the ask.
Over many trades, the difference matters. If the spread is a pip and targets are three pips, a third of the target is the spread.
Awareness helps with planning. When setting a target, add the spread if needed, so the real gain after costs matches expectations.
Some platforms offer a setting to draw charts on the last price or the ask. Trying them on a demo shows how entries and exits line up with the visual.
Which price is used when marking entries and targets on the chart?
This mismatch causes constant small confusion. A trade marked at the chart's closing price actually opened a bit higher. A target at a level on the chart needs the bid to reach it, which is exactly the chart's line, but the entry used the ask.
Over many trades, the difference matters. If the spread is a pip and targets are three pips, a third of the target is the spread.
Awareness helps with planning. When setting a target, add the spread if needed, so the real gain after costs matches expectations.
Some platforms offer a setting to draw charts on the last price or the ask. Trying them on a demo shows how entries and exits line up with the visual.
Which price is used when marking entries and targets on the chart?