Difference between pip and pipette

[anon81929759]

I’m sensing A LOT OF CONFUSION here from you

let’s get one thing out of the way FIRST OF ALL

Let’s pick a few brokers out of a hat so to speak… ok
now you are with ALPARI…

@Lexzykool317

the plaform I have is the platform from a broker(alpari mt4).I downlaoded mt4 platform yesterday that is not attached to any broker but it was very similar to the alpari

NO MATE… THEY ARE NOT SMIILAR , they are IDENTICAL

you see
Alpari MT-4
Pepperstone MT-4
Oanda MT-4

are exactly the same as MT-4 (Raw)
the only difference is the RAW version from MT-4 comes unconfigured
the brokers then take it… they configure it and YOU DOWNLOAD IT from their website CONFIGURED
so you don’t have to do anything further

IT’S THE SAME PROGRAM MATE… ok[quote=“Lexzykool317, post:17, topic:129608”]
Can you explain how it’s easier and more user friendly please?
[/quote]

Sure…
well. firstly THIS IS MY OPINION of course
but a lot of people seem to agree

MT-4 is easy to use, Easy to place trades, its nice, it’s basic and it’s quick and not heavy on computer resources.
drawing lines and attaching indicators and experts is easy
backing up is easy
adding new indies and experts is easy
it’s easy all around

now your 2 choices will be MT-4 and C-Trader
Just like with a computer you are either a Windows Person or a Mac Person
well in trading you are either an MT-4 Person or a C-Trader person
now in computing we have Linux people

and in trading we also have Webtrader people, but the webtraders and mobile phone traders are not the majority

the majority are C-Trader and MT-4
Pick one

@Lexzykool317

If you don’t have to make transactions through a broker,what is their role in forex trade?

i think we need to be CLEAR ON THE WORD “TRANSACTION”
Now, by definition it means (Loosely) ANY TRANSACTION Any Exchange of good and services for cash

BUT. you have used it in the context of WITHDRAWING MONEY (which is also a transaction) but… i assumed you were saying
can you withdraw funds directly from the MT-4 Platform… NO YOU CAN’T
you need to go to your broker online and do it in the client area

what is the purpose of the broker
THEIR PURPOSE IS TO FACILITATE YOUR TRADE
their purpose is not really to provide a platform, but THEY DO IT ANYWAY

so i suppose
UNDERSTAND THAT the broker is there to mediate the trade on your behalf and take a commission
you can do all that within MT-4

you cannot withdraw or fund your account from MT-4 directly

@Lexzykool317

I thought some of the things to consider when choosing a broker is a broker that charges less on commission,pip spread etc. I thought of you trade on the platform of a broker that charges less,you will make more profit and pay less for charges.

NO…
if a broker charges commission and has a fixed spread of 3 pips for example
whether you trade on MT-4 or directly from the web interface THE FEES AND SPREADS ARE THE SAME

MT-4 IS MERELY AN INTERFACE PROGRAM

it’s like this ok
you have email with let’s say Telstra (Bigpond) or whoever your carrier is
and YOU USE A PROGRAM CALLED OUTLOOK

Now… Outlook is NOT YOUR EMAIL
Your email is held on the server of your provider

Your trades are held and executed on the server of your broker

Outlook merely is a program that talks to the ISP server to get your email

MT-4 is merely a program that talks to your brokers server and says “hey … put this trade down now… ok”
and the server does it

if you put a trade down to buy EUR USD and your computer shuts down
the trade is still running on the server regardless

however, if the server dies but your computer and MT-4 platform still work, Your trade is gone (in theory)
get it

@Lexzykool317

If i do the trade off MT4 direct, how will the payment for charges attached to trades be charged and paid for?

Nothing will change
THE CHARGES ARE IDENTICAL
MT-4 IS GIVEN TO YOU FREE OF CHARGE

if a broker ever charges you for MT-4
Say Good by and give them the middle finger… simple as that

@Lexzykool317

My main concern is the volume feature. I thought I will see position size but I did not.

Can you give me the link I can use to download the General mt4 platform that makes use of position size please?

hehe
in MT-4 you use LOT SIZES
this is how the program is programmed up, you can’t change it
and there is no MT-4 program that will be different
they are all the same

@Lexzykool317

You didn’t really get me.What shows in the VOLUME option on my mt4 platform is 1.00 and when I use my mobile mt4 app to check it, it shows as $1.00. I didn’t say $1,00.
So from these, if volume is what is used to trade and not position size,how do i determine my position size and does it mean it’s $1.00 I used for the trade (based on the use of volume to trade?)

are you sure you are using THE ORIGINAL MOBILE MT-4 App
because there are a lot of copycats

i have Mobile MT-4 Mine says LOTS so 1.00 not $1.00
you must have a different app

@Lexzykool317

$9 divided by 30 pips = 0.30 Meaning 30 cents Per pip
NOw, you convert that to lots and it’s 0.03 lots
because 0.01 lots = 10cents per pip
so 0.01 x 3 = 0.03 Lots or 30 cents per pip

I understood how you got all these values in your calculation but when I calculated
$9 divided by 30 is 0.3 and not 0.30
Are they the same or did you use 0.30 because 1 decimal place can’t be used for the calculation

what do you think 0.3 Means ???

Mate, if we standardize it to CENTS
so instead of
$9 divided by 30
we say
900cents divided by 30 = 30cents right

so
0.30 is = to 30 cents
and obviously
0.3
and 0.30
and 0.300
and 0.300000000000000000000000000000
ARE EXACTLY THE SAME aside from how many decimal places you want to go to
but with money we use 2 decimal place
but it is understood that 0.3 cannot be 3 cents
Your calculator will round off 0.30 to 0.3 because it knows IT DOESN’T MATTER.
does that make sense

@Lexzykool317

Account Balance - Nomainal Margin = What you are really left with
then

Ok.but on the platform I use, when I log in and I don’t have any open trade,the only values that show are: balance,equity and free (or usable) margin.nominal margin doesn’t show.so how will i know what my nominal margin is?since my platform doesn’t make use of position size but volume?

well that’s right
because when you have no trades on, YOU ARE NOT USING ANY PORTION OF NOMINAL MARGIN
hence it won’t show you the Nominal margin

THIS IS THE POINT…
YOU NEED TO WORK IT OUT BEFORE YOU PLACE THE TRADE

LOOK,
do me a favour ok
ask your broker how to work out Nominal Margin or research it for yourself
I’ve given you a lot of material here

do me a favour and do some homework and find this out
and if you can’t i’ll help you

but, remember I WORKED THIS OUT ON MY OWN
so… why should you not ?

Nomainal margin is a combination of
Account Leverage
Local Currency
Current Exchange Rate
Your instrument
Your Lot Size
i think that’s it

go work it out

[Lexzykool317]

Ok.thanks a lot for the explanation

[Lexzykool317]

Ok I now understand all your explanations so far.if you say mt4 is in lot sizes where does it show when you want to enter the value for the lot size?can you attach an image please?

This is what shows in the mobile mt4 platform when for instance I close a trade:

This is what shows when for instance I key in the volume as 1.00 and close the trade.it says I placed the trade at #1.00

From all what you have said so far,if I calculate the nominal margin and position using the example we used before where the amount I can risk is $9 and the lot size is 0.03,where will I indicate this amount and the position size when I click the icon ’ New Order’ when I want to place a new order?

[Lexzykool317]

[quote="Lexzykool317, post:23, topic:129608.it says I placed the trade at #1.00
[/quote]

it states I placed the trade at 1.00 I mean.
What does the volume actually represent?

[eddieb]

it states I placed the trade at 1.00 I mean.
What does the volume actually represent?

That means you have bought 1 standard lot.
For mini lot it would say 0.10, for micro lot 0.01

I trust this is a demo account

[anon81929759]

@Lexzykool317

Ok I now understand all your explanations

Excellent hehe glad to hear it.

@Lexzykool317

.if you say mt4 is in lot sizes where does it show

it is in Lot sizes
it shows it here

1.00 (in blue writing) is the lot size you used for this trade
so this trade was
EUR USD
you were BUYING
You bought at 1.22150
and you started trading with 1.00 standard Lot ($10 per pip)

now we can see by this…

that

You’re NOMINAL MARGIN for the trade is $244.30
so if you traded at a lot size of 0.10 Lots… it’s reasonable to assume that the NOMINAL MARGIN would APPROX… be $24.43 OR THERE ABOUTS, it depends on exchange rate as well.

Now… You’re margin level WITH THIS NOMINAL MARGIN AND LOT SIZE was 1876.32% THAT’S GOOD
as a general rule, KEEP IT ABOVE 1,000%

if it goes to 100% You are in trouble
if it goes to 80% you’ll get a margin call
if it goes to 20% YOUR’E DONE, Account is blown up

Now…

@Lexzykool317

where does it show when you want to enter the value for the lot size?c

Mate… see this icon in the top right corner

this is the icon to ADD A NEW TRADE

when you press this it will take you to another screen

on one side you will have the option to enter a Stop Loss amount
on the other side you will have a take profit amount

i think TAKE PROFIT is on the right
and STOP LOSS is on the left

now. IN THE MIDDLE of those 2 things you get to choose YOUR LOT SIZE

since you just did a trade for 1.00 lots
go back into this button
and LOOK AROUND for where it says 1.00

now,JUST FOR EXPERIMENTATION

CHANGE 1.00 to 0.05
AND PLACE THE TRADE
then come back to the trade screen and see what happens

then you will know how to change the lot size

DOES THAT MAKE SENSE

[Lexzykool317]

yes, its a demo account. ok. so if 1.00 is for standard lot, 0.10 for micro etc, does it mean the other values are values for lots in between? i a value like 0.05 will be for what lot?

[bmf04]

Why we basically use this term ? Is it for Forex Trading or for cyrptocurrency trading also ?

[eddieb]

Hi Lexzykool.

1 standard lot (1.00) is 100, 000 units
1 mini lot (0.10) is 10, 000 units
1 micro lot (0.01) is 1, 000 units

In your example, 0.05 is 5 micro lots, or 5, 000 units

Hope that helps

[Lexzykool317]

yes it does. i thought volume and position size are two different things hence the confusion.but thanks a lot for taking your time to explain.
One more thing please, what is the contract value for GBP/USD Pair?

[Lexzykool317]

Yes it does.tanx a lot.I appreciate

[Lexzykool317]

[quote=“Lexzykool317, post:17, topic:129608”]
Now. did you understand this… that you are risking 1% of what is remaining
because 1% x 900 = 9

From the calculations we made for this,if I am risking 9$ to trade for a micro lot of 0.01 and after the calculations,we got 0.03 as the lot size.
Just to be clear from all these,it’s 0.03 I will enter as the volume I want to trade in the ‘New Order’ column on the mt4 platform,right?

[anon81929759]

@Lexzykool317
EDIT : MY APOLOGIES MATE for confusing you again
i had an entire evening of no sleep due to work commitments

Volume in the industry GENERALLY MEANS what i stated
but, i forgot about the screens shot
so yeah…

in the screenshot VOLUME means LOT SIZE
sorry again for the confusion
be cool

[eddieb]

@anon81929759

Volume is HOW MANY CONTRACTS exist in the market for a specific instrument

Not in the example Lexzykool gave earlier.

In her image, volume refers to how many lots Lexzykool wishes to trade

[Lexzykool317]

Your misunderstanding me.the volume i am referring to is the one that is displayed on mt4 platform when you click on the icon to create a new order as shown in the image attached

[Lexzykool317]

quote=“Lexzykool317, post:17, topic:129608”]
Now. did you understand this… that you are risking 1% of what is remaining
because 1% x 900 = 9

From the calculations we made for this,if I am risking 9$ to trade for a micro lot of 0.01 and after the calculations,we got 0.03 as the lot size.
Just to be clear from all these,it’s 0.03 I will enter as the volume I want to trade in the ‘New Order’ column on the mt4 platform,right?

The image you attached Is what i want clarifications on as u rightly figured with regards to the quoted text.

[anon81929759]

ok… sorry my bad
YOU ARE RIGHT

IN THIS EXAMPLE VOLUME MEANS LOT SIZE
sorry mate, haven’t slept all night and was a bit tired
i’ll go back to that other comment and edit it.

thanks for pointing this out.

[anon81929759]

I’ve made the edit mate
thanks for bringing that to my attention again.
be cool

[anon81929759]

I know
sorry mate, i’ve made the change

you are right, i misunderstood at the time of posting that comment as i was very tired

[Lexzykool317]

It’s alright. Apology accepted.I guess it’s because of the stress you didn’t get me well at first.sorry about that.

Now. did you understand this… that you are risking 1% of what is remaining
because 1% x 900 = 9

From the calculations we made for this,if I am risking 9$ to trade for a micro lot of 0.01 and after the calculations,we got 0.03 as the lot size.
Just to be clear from all these,from this example,is it 0.01,0.03 or 9 I all enter as the lot size If it’s $9 I want to risk for a micro lot?I understand all the calculations done.just that I am not sure which value I I enter as the lot size for the trade.