---
title: Why is there a loss as soon as I open a trade?
description: The reason your trades start negative is because of the spread which is the difference between the Bid (Sell) price and Ask (buy) price. If you open a buy position at ask price, then you must sell at the bid…
url: "https://ms.wmmarkets.com/knowledge-base/trading/why-is-there-a-loss-as-soon-as-i-open-a-trade/"
updated: "2024-10-09"
category: Trading
---

# Why is there a loss as soon as I open a trade?

The reason your trades start negative is because of the spread which is the difference between the Bid (Sell) price and Ask (buy) price. If you open a buy position at ask price, then you must sell at the bid price to close it. If you open a Sell position at bid price, then you must buy at Ask price to close it.