Five Digit Prices Kill Profits

Broker Discussion Forex Brokers
1

I downloaded the US version of the software, and because of the Five digit prices, and because the new software did not have a set SL or TP by Pips, I had to do “in the head” pip addition and subtraction to set the values. I guessed at it, then looked at the chart and chose to use the RULER to determine actual best position. So Overnight, I look at my chart and find that my trade went way up as planned. Then I look at my closed trade and find that it closed the trade at a 7.5 pip profit and not the 75 pip profit that I had set.

Now, I understand why brokers have a 5 digit system so as to have spreads of 1.8 pips instead of 2 pips, BUT, it all needs to be behind the scenes, and not on our screens !!! Banks do not send us statements with our bank balances to 4 or 5 digits, even though interest might be paid this way. IT IS CALLED ROUNDING OF THE NUMBERS, programmers!

What good is a chart ruler, if you pull a level and it says 75, when the actual pips is 7 ?

2

I find 5th decimal pricing welcoming. It leads to lower spreads and can increase some profits, though not by much. I also definelty see that 5th decimal pricing can be very attractive to scalpers. Like with any new change you have to get used to it. I have put stop losses 3.0 pips away when I meant 30.0 pips. Luckily I was able to change it before I got stopped out.

Good luck trading,
JS

3

5 decimal pricing just takes a little getting used to. Just remember that the pips you see are actually “pippettes” and that there are 10 pippettes to an old pip.

There Pippettes are a good thing. They allow fractional spreads, even less than one pip on some pairs if you have an ECN account. Traders Rejoice!