This has happened to me when DEMO trading the different indexes on FXCM. When trading the ITA40 or the UK100 among others the single move of one PIP has had values suck as 1000 euros! The demo account was “founded” with 3000 EUR and the leverage was 1:100.
Today I retried trading it for fun with the same accout setting and all of a sudden the PIP value is now 1 EUR per tick… What is reall going on here? Have I missed something? Thx for any help!
Hi Martinus,
Welcome to the FXCM section, and thanks for letting me know about this. I registered two demos just now, and I am unable to replicate what you described…pip value of 1,000 EUR when trading UK100 and ITA 40. Here are the screenshots from the positions in my demo. Below are screenshots of both MT4 and FXTSII with positions in UK100 and ITA40 on the demos I just created:
Could you post the username of the demo this is occurring in and a screenshot of the open positions so I can investigate what may be happening on your demo.
Thanks,
Jason
Unfortunately the DEMO account this happened on was deleted since the virtual funds on it where literally whiped out in seconds. This happened in two occasions about two months ago. This issue was reported on all indexed except US30, SPX500, NAS100 and GER30. As I thought this was normal I left the other indexes alone and when I tried again today just for fun I got normal pip values as you present in your screenshots.
The DEMO account settings were as follows:
Funds: 3000
Currency: EUR
Leverage: 1:100
I really hope for the sake of my future interest in opening a live account with you that this can’t happen with a live account, and if so how would such a situation be handled? Any idea what can have caused this? You have to understand thatone get’s a little sceptical when such a thing happens.
Anyway, I’ll look further into the issue myself and I’ll present you with examples if it occurs again. Thanks for the assistance.
I’ve never seen nor heard of this occurring on a demo so I can’t say I have any idea as to what may have been occurring. But if you see it again, please do let me know. The only way a pip value would be 1,000 euros per pip is if the position size were very large. In this example, you would have to trade a position of size of 1,000 in ITA40 for each pip to be worth 1,000 EUR, and the margin requirement just to open that position would be 170,000 EUR. The trade would be rejected automatically since you do not have enough margin to open the position.
-Jason
Yes, it was a very surprising experience indeed to say the least. I will monitor the situation and come back to you if any smilar occurence happens again. Until then, thanks for your help.
Regards
-Martinius