Point, revisited
In this earlier thread we were told that a point was 1/10th of a pip.
However, in the MQL4 book, we read:
However, I would say that this is a 4-digit broker where the spread is 2 pips or 20 points (not 2 as the text said).
On a 4 digit broker a point has value equal as pip
only at 5 digit brokers a pip is 10 points
the moment the MQL4 book was written there was no 5 digit notation broker
In this earlier thread we were told that a point was 1/10th of a pip.
However, in the MQL4 book, we read:
However, I would say that this is a 4-digit broker where the spread is 2 pips or 20 points (not 2 as the text said).
Yeh, so a pip is the lowest noticeable change in the 'forex tradition', i.e. in most major currency pairs a pip is 0.0001 except for xxxJPY where a pip is 0.01 etc.
A point is the lowest noticable change on your broker chooses shows you on your software.
There is not necessarily any link between the two but generally it is 0.00001 for major pairs and 0.001 for xxxJPY, just because it's handy.. but it's not a rigid definition.
Yeh, so a pip is the lowest noticeable change in the 'forex tradition', i.e. in most major currency pairs a pip is 0.0001 except for xxxJPY where a pip is 0.01 etc.
A point is the lowest noticable change on your broker chooses shows you on your software.
You are wrong, as deVries said for a 4-digit broker a pip as a point. So for EURUSD, "the spread is 2 pips or 2 points", a point is 0.0001. Beware to not confound with ticksize.
Actually I think that is wrong . . . a point is the value of the last decimal value shown for the symbol. The smallest increment of change for the symbol is MODE_TICKSIZE
It's MODE_TICKSIZE the value of a point change in the deposit currency?
I mean the smallest incremental change in price.
No he is not. Doesn't matter whether the broker is 4 digits or 5 digits. A pip is a pip. 0.0001 is one pip (1 point) 0.00010 is also one pip (10 points) Is 0.0001 not equal to 0.00010?
I take a point to be the lowest possible change in price shown by the broker.. isn't this is also the value of MarketInfo(symbol,MODE_POINT) ? For a 4 digit broker it would be 0.0001 (1 pip), for a 5 digit broker it would be 0.00001 (1/10th of a pip).
Also I've seen two ostensibly 5 digit brokers who treat a certain cross currency differencly, one broker gives it 4 digits and one gives it 5, so this can't be an absolute rule, it's just whatever the broker decides.
If some crazy broker wanted to, a point could be a thousand pips.
It's MODE_TICKSIZE the value of a point change in the deposit currency?
I mean the smallest incremental change in price.
MODE_TICKVALUE is the value of a point in the deposit currency. The smallest increment in change of price is MODE_TICKSIZE . . . for example take a look at some of the indices.
Eh, hehe, isn't TICKSIZE the price of a point in quote currency?
If the price is 0.12345, the smallest incremental change in price (a point) is 0.00001 right? neither ticksize of tickvalue have anything to do with it.
(apart from a 0.00001 change for 1 lot is worth MODE_TICKSIZE in the quote currency (generally 1 for major pairs, and 100 for xxxJPY), and worth MODE_TICKVALUE in the deposit currency.)
Eh, hehe, isn't TICKSIZE the price of a point in quote currency?
If the price is 0.12345, the smallest incremental change in price (a point) is 0.00001 right? neither ticksize of tickvalue have anything to do with it.
(apart from a 0.00001 change for 1 lot is worth MODE_TICKSIZE in the quote currency (generally 1 for major pairs, and 100 for xxxJPY), and worth MODE_TICKVALUE in the deposit currency.)
| MODE_TICKSIZE | 17 | Tick size in points. |
Nope . . . as I said . .
MODE_TICKVALUE is the value of a point in the deposit currency. The smallest increment in change of price is MODE_TICKSIZE . . . for example take a look at some of the indices.
You can see here that point is 0.1 but the smallest increment that price moves by is 0.5 which is TickSize
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In this earlier thread we were told that a point was 1/10th of a pip.
However, in the MQL4 book, we read:
It can be easily seen that, in this case, the broker offers a spread of 2 points.
However, I would say that this is a 4-digit broker where the spread is 2 pips or 20 points (not 2 as the text said).