Question about 4 digit and 5 digits in mt4

Beginner Questions
1

O.K. trying to figure out this delima. I have opened several demo accounts well more like 15 different ones to test server speeds and see spreads etc… and have noticed in mt4 the brokers with 4 digits vs 5 digits seem to quote pips differently. IE…
bid ask
fx solutions eur/usd 1.4560 1.4565

a buy at say 1.4565 and the market moves to 1.4575 is a 10 pip move.

but move to fxopen (ecn) and same senario but in 5 digits now.

                               bid              ask

fxopen eur/usd 1.45600 1.45650

a buy at 1.45650 and the market moves to 1.45750 mt4 shows as a 100 pip move?

So the question is whats up? is it a 10 pip or a 100 pip??? I know it’s supposed to be a fraction but the mt 4 dosent see it that way?? please explain.

2

In the 5 digit scenario, the 100 pips you refer to are actually 10 pips. The fifth sign is in fact a fraction of a pip (1/10 of a pip), therefore 10x10pips = 100. Nevertheless, the result should be the same in both the 4 and 5 digit scenarios.

3

First let me say thanks for the response. You explained it as I understood it to be fractions of a pip. But take a look at this pic and explain why mt4 is calculating this 17 pip move as a 170 pip move??

4

That figure is profit in USD, not pips. So you have made $170 profit on the trade due to trading a standard lot. Pip value is $10.

$170 Profit - $10.20 Commission = $159.80 net profit displayed in the total line right below.

Also, MT4 inherently recognizes the last digit in the quote as a whole pip, so if you are setting stops/limits you may need to enter 10 to signify one pip. For example if you want to set a 10 pips stop loss, you would enter 100 whereby the last 0 represents a fractional pip. Something to double check on with your broker if they quote to 5 digits on MT4.

5

thanks for the clearification, I figured it was something simple. I knew the profit calculations were correct just couldn’t grasp the profit in points aspect. thanks a bunch.