Hi please forgive my dumb question as I am new and learning. Have read a few books but cant find the answer to this question.
When making a trade on MT4 Is it not better to sell by Market all the time. My reason is as I write this CHF/JPY shows 118.330sell/118.357buy. If I click sell by market I start off at the exact price of 118.330 but if I buy by market the trade still starts off at 118.330 and I am behind $27 or 27 pips right from the beginning of the trade. Therefore the market must go up 27 pips before I break even. This does not seem right to me but I as I say I am new and still using a demo account so not losing any money while trying to figure this out.
Please try to keep answers simple. I am not dumb but still learning.
There is Tick, PIP, and Point. They are all different in general. A tick is the smallest change of price. A Point is the least significant digit quoted. In currencies a pip is defined as 0.0001 (or for JPY 0.01)
On a 4 digit broker a point (0.0001) = pip (0.0001). [JPY 0.01 == 0.01] On a 5 digit broker a point (0.00001) = 1/10 pip (0.00010/10). Just because you quote an extra digit doesn't change the value of a pip. (0.0001 == 0.00010) EA's must adjust pips to points (for mq4.) In currencies a tick is a point. Price can change by least significant digit (1.23456 -> 1.23457)
In metals a Tick is still the smallest change but is larger than a point. If price can change from 123.25 to 123.50, you have a TickSize of 0.25 and a point of 0.01. Pip has no meaning.
This is why you don't use TickValue by itself. Only as a ratio with TickSize. See DeltaValuePerLot()
To add comments, please log in or register