Hello guys,
could someone please explain why for every volume of 1.0 (1 LOT I assume) position that I open, NO MATTER what pair - the pip value is always 1 GBP (the deposit currency). This is in MT4 and I was wondering is this some kind of automated money management or something?
Because I know that for example the value of a pip for the volume of 1 (100,000 units) in xxx/JPY should be GBP 5.30 or USD 8.10 at the current exchange rate.
Can someone please explain and I am sorry if this seems stupid.
Cheers, bye.
you experience something strange. Either you look at it wrong or something functions wrong. The pip value is always measured in the counter currency of any pair. So when we talk about EUR/GBP then the pip value is in GBP. If we talk about EUR/USD then the pip value is measured in USD and for the pair of NZD/JPY you will see the pip value in JPY.
The second strange fact is with the lot size. The 1USD, 1GBP, 1JPY pip value goes more with a mini lot (0.1 standard lot) and it should be 10x larger for a standard you which you mention in your post.
You should definitely do some further investingation there
Pip value is not the same. On a £1000 account I can happily trade 0.5 lots on EURGBP or many other chart. Try doing thaton any CHF chart and it will tell you that you don’t have enough money.
Hi guys, thank you all for your replies.
It seems that 1.0 volume actually means only 10.000 at this broker, and the step size is 0.10 (1000). It is a bit strange because I always thought that 1.0 universally means 1 standard lot in MT4.
I forgot to mention that this is a UK spread betting account, however I fail to understand why the pip value is the same on all instruments, stocks, forex, etc the value is always 1 GBP at a volume of 1.
Below I have attached a printscreen and if you look at all the positions and calculate the profit/loss it is univarsally 1 GBP/pip and I fail to understand why is that.