You press Buy. The position appears on MT5. Before you have time to study the chart, the profit column is already red.
For a new trader, this can look confusing. Understanding which prices are involved makes the figure easier to check.
There are two prices, even when you notice only one
In a typical forex quote, the ask is the price available to buy, and the bid is the price available to sell. A buy position is opened at the ask and would ordinarily be closed by selling at the bid. A sell position is opened at the bid and would ordinarily be closed by buying at the ask. MetaTrader 5's official documentation explains these trading-price conventions.
Consider an illustrative EUR/USD quote: bid 1.1000 and ask 1.1002. The spread is 0.0002, or two pips. If you buy at 1.1002 and the bid remains 1.1000, the position's immediate closing price is two pips below your entry.
For a hypothetical 0.10-lot position with a 100,000-unit standard lot and a USD account, each EUR/USD pip is approximately $1. The two-pip difference therefore represents approximately $2 before commissions and other adjustments. This is an educational calculation, not a SmartFIN quote or a claim about its actual contract size or pricing.
That first $2 is useful information. It tells you that costs are part of the trade from the beginning, rather than something to consider only after closing it.
Check the position and account history together
Start with the actual entry price and the current bid and ask. A quote can change between clicking an order and receiving a fill. The size of a displayed loss therefore needs to be checked against the executed price, not just the price you remember seeing.
Next, check commissions and other recorded charges in the relevant deal and account history. Charges may be recorded separately from the position's floating profit. The layout and timing depend on the account configuration, so one visible number may not represent every expense.
Finally, confirm the symbol and volume. A larger position makes the same price difference worth more money. Gold and other CFDs use their own contract specifications; do not apply the EUR/USD pip calculation to every instrument.
If the figure still looks unexplained, keep the order ticket, symbol, volume, entry price, and timestamp. Ask support to reconcile the execution and charges against the relevant records. Do not share passwords or one-time security codes.
What this changes before your next order
For UAE traders using MT5, the practical habit is simple: inspect both prices, understand the contract size, and review the account's charges before entering.
Read why forex spreads can widen at night if the gap looks larger at a particular time.
For a broader comparison, review the full cost of forex trading.
A red figure immediately after entry is not a reason to increase your lot size or open another trade to recover it. First establish what produced it.
If you are considering an account, review SmartFIN's account requirements and ask about the applicable trading conditions.
Forex and CFDs involve significant risk. Leverage can magnify losses. This article provides general education, not personalized investment advice.
