Please guys,i need some help. How does does calculate the number of Points/pips on MT4 trading indices using the crosshair symbol when the market moves from point A to point B? i know it is the figures in the middle,excluding the last number,when trading currency market but am not sure how this applies to indices
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Hi @ucillopips,
When it comes to trading forex, counting the number of pips and tenths of a pip works the same from one currency pair to the next with the exception of Japanese yen crosses (pairs ending in JPY). As you noted, it’s the second to last digit that is the pip.
However, with indices, there can be more variation. For example, FOREX.com* prices SPX500, US30 and GER30 to one tenth of a point on the index. Therefore, it would take ten points using the crosshair symbol on your MT4 chart to equate to one point on the index for such indices. By contrast, we price JPN225, HK50 and CHINAA50 to one full point. Therefore, one point using the crosshair symbol would equate to one point on the index for such indices.
We can’t speak for other brokers on this, but the general rule with FOREX.com is that if we price a particular index to 1 decimal point, then it will take ten points using the crosshair symbol to equal one point on the index. If we price a particular index to one full point, then the crosshair points will be the same as the index points.
*Note: Indices and other CFD products FOREX.com offers outside the US such as commodities and cryptocurrencies are not available to US residents.
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Thanks for ur reply. It would make more sense to me if u could kindly illustrate ur explanation with a snapshot while demonstrating ur explanation using the crosshairs on an mt4 chart.
Thanks in advance
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ohh,I am so happy that I found this thread,thanks for the tips