Today Im trying to do some iron condors on demo, I found one with small premium $3 and $4 so $7 total, I bought 2 sell and 2 buy contracts, at the expiry the price was pretty much in the middle -+1 pip, it was gbpusd, when I got payout I found out that I only made $7 minus fees so $0. My understanding is that if you buy 1 sell and 1 buy contract you get $7 if it stays in the middle right so for 2 sell and 2 buy contracts I should get $14 right? Also another issue with the breakeven, I had another contract eurusd hit my breakeven lvl, the sell contract was closed by the stop trigger to cut the loss so it hit my sl lets say, than I closed the buy contract thinking I would be at BE, than when I checked the payout I actually lost $50 so how does it work? Thanks Stan
Premium vs number of contracts
Stan, If you can screenshot your trade history or a little more info please we may be able to help a little better. it is hard to comment without seeing what contracts your bought and sold and at what price. Also can you clarify wht you mean by “i bought 2 sell and 2 buy” “buy one sell and 1 buy” not quite sure what you mean there. With a spread you are either buying it or selling it. You are not selling a buy or buying a sell. So that may be part of the confusion. If you could give us a little more we can try to help you out some more here. Thanks. Have you watched the iron condor video under the News Trading Plan tab?
Are you saying you made a trade with a $3.00 and a $4.00 premium for a iron condor. If this is the case then your missing the whole point. We are looking for a minimum of $15 and most often close to $30 and $100 preimiums when donig iron condors.
If you only had $7 premium between the buy and sell and it landed in the middle then hwo would you have made $14
Breakeven is at expiration
how you lose $50 i have no idea as i have zero details from you on the trade (price market was at when you entered: what contract you entered - what price the 2 spreads where - how much time till expiration etc…) Screenshots of the scanner will make this a lot easier to help you on.
I massively over traded this with selling 4960-6000 and buying the 4920-4960 what happens to all the excess premium?