Dear Jason,
I am wondering Fxcm on what decimals calculates pips? i mean if eur/usd is
1.34881 and drops to 1.34397 that is 484 pips difference,
some brokers skip the last decimal and the pip value would be 48…
is your broker calculates on 5 decimals or on 4?
thanks,
Bambura
4th decimal place for non jpy pairs = pip. 2nd decimal place for jpy pairs. The 5th (and 3rd) decimal places are just fractional pips that have only recently become popular.
Hi Bambura,
Exactly as barb mentioned in the previous post!
FXCM quotes to 5 decimal points. The 4th digit is a whole pip and the 5 digit is a fractional pip (1/10th of a pip). So a movement from 1.34881 to 1.34397 that is 48.4 pips.
Fractional pip pricing should reduce bid/ask spreads.
-Jason