Forex for a trader
5 decimal places forex

5 decimal places forexDecimal Places In Forex. by Solomon Chuama. Understanding how and where to apply the decimal places of currency pairs and crosses can make a significant difference in your trading. W hen trading forex, it is important to understand the differences between trading platforms and how to place trades, and how important it is to understand the concept of decimal places in those platforms. Some concepts like the stop-loss and take-profits are explained in your trading platform’s user manual. However, the concept of decimal places is not always clearly defined. Nowadays, many brokers’ platforms are moving from the fourth decimal place to the fifth decimal place pricing in the forex market. This development has brought conflicting issues among novice traders, especially when they want to modify their stops and targets in trade placement. The situation becomes even more complex when a broker sets certain currency pairs and crosses to four and five decimal places in the same trading platform. There are some advantages to pricing to the fifth decimal place in the forex market, in that: Trading to the fifth decimal place can reduce the difference between the ask and bid price of a currency pair Trading to the fifth decimal place provides better liquidity and execution for clients Brokers can allow for tighter spreads and more accurate price execution. The following are examples of computations from trading platforms: Computation of fourth decimal place. In this trading platform, we have the following: All yen (JPY) pairs and crosses are quoted to two decimal places.

For instance, the US dollar (USD)JPY is bought at 90.25, so: Stop-loss is 30 pips Take profit is 100 pips All other pairs and crosses are quoted to four decimal places (Figure 1). For instance, the Australian dollar (AUD)USD is sold at 1.0469, so: Stop-loss is 100 pips Take-profit is 300 pips. FIGURE 1: FOUR DECIMAL PLACES. The AUDUSD is quoted to four decimal places on this chart. This is also true of other pairs and crosses, except the JPY pairs and crosses that are quoted to two decimal places. Example 1: USDJPY is 90.25 In this example, you buy the US dollar and sell the yen. Since one pip is 0.01, then 30 pips will be 0.30 and 100 pips will be 1.00, respectively. I will set my stop-loss at 89.95. The presumed loss (30 pips) will be subtracted from the entry price (90.25 less 0.30 is equal to 89.95). In addition, I will set my profit target at 91.05, which is the result of adding my presumed profit of 100 pips (1.00) to the entry price (90.25 plus 1.00 equals 91.05). If the order is executed and I want to modify my order, I could type, say, 30 in the stop-loss area and 100 in the take-profit area in the platform. Assuming the profit and loss is in pips and the market moved up 30 pips, the profit would show 30. But if the market goes in the opposite direction by the same number of pips, it will show a loss of -30. …Continued in the November issue of Technical Analysis of Stocks & Commodities. Excerpted from an article originally published in the November 2012 issue of Technical Analysis of Stocks & Commodities magazine. All rights reserved. © Copyright 2012, Technical Analysis, Inc. Forex Tester 3 Forum. 5 decimal places - Show Correct Pip Value. 5 decimal places - Show Correct Pip Value. #1 Post by Paul12 » Thu Apr 12, 2012 5:26 pm. This is just a handy little update I would like to see in the future and I hope you guys take a look at. A lot of brokers now use 5 digit decimal places as standard on most pairs. Forex tester allows us to change the decimal value to 5 but by doing so it also dynamically fills the field beside to show '0.00001'.

If you save these settings and generate ticks you will soon notice that your margin settings have all been affected too and divided by 10 because of the extra decimal place in the '0.00001' box. The small workaround (sort of) for this is to enter 5 in the digit box but leave the decimal box beside it to '0.0001'. This means your marginlot settings will work properly and 5 decimal places are shown on your charts. The catch? Well this now means there is an extra 0 added to your pointspips column when you trade. So you complete a trade and it shows you profited by 600 pips when in fact it was really just 60 pips. That leaves just 2 scenarios to choose from, A: You leave it as 4 digits, leave '0.0001' and your pips show properly. B: You change it to 5 digit places and leave '0.0001' so your lot size still work properly but your pip values will always show a figure 10 times larger than the actual amount. In a future update it would be great if FT just recognized when you use the B setting and displays the pips correctly so all your reports display the correct values too. If there is in fact a way to make 5 digit charts work perfectly with lot sizes etc that I have overlooked please do let me know. I would appreciate it. The trader's Forex calculator. The trader's calculator has been designed to allow you to work through the implications of a trade before it is opened, or to analyze an already open one. By using the calculator, you can examine up to 5 trades simultaneously, looking at aspects such as pip value, contract size, spread, swap, margin, commission and potential profit. Just enter the data that you want to consider and click "Calculate". Let's say you have a standard. mt4 account with leverage set to 1:1000, and you want to work out the spread, swap and potential profit for a SELL position of 10 lots of USDJPY. Firstly, enter the appropriate details in the "Account settings" section.

You'll need to select i) standard. mt4 ii) leverage at 1:1000 and iii) USD as the account currency. When you have done that, click "Accept and continue" and the "Trade settings" section will open up. Choose USDJPY from the instrument list, then type in 10 in the "Volume" column, and choose SELL as the action. The calculator will then add the opening and closing prices of the deals, which you are free to edit as required. Let's say that the opening price is 100.500 while the closing price is 100.350 1 . The following will be displayed in the table: Trading Instrument – USDJPY. More information about specific trading instruments can be found on the "Contract specifications" page. Price – 100.500. This is the SELL price of the trade. If you want, the calculator will convert this amount into your deposit currency showing the exchange rate. Pip Value – 99.50 USD. For more information on how to calculate this value, see the "Trading conditions" page. Spread (the difference between the Ask and Bid prices) – 19.90 USD. Each currency pair has an average spread. Swap (the cost of keeping a position open overnight). Depending upon the interest differential of the currencies you are trading, this figure can either be positive (in your favor) or negative.

More details can be found in the "Trading conditions" page. The calculator works out the current value of the swap by itself, taking information from the "Contract specifications" 2 . Margin, or the minimum amount of free equity on your trading account required to open a specific position. The calculator looks at the Margin requirements for each instrument. Profit. As the position was opened as a SELL, on the basis that the price would fall, the potential profit is 1,542.25 USD. If you have any questions, please contact one of our online consultants or get in touch with us on the phone at. If you have made your calculations and are ready to start trading Forex for real, then register for an account right now! Attention: If a result is less than 0.01, the amount displayed is rounded down to zero. 1 pip is equal to: for currency pairs traded to 5 decimal places – the minimal change of the 4th digit after the decimal place (0.0001); for currency pairs traded to 3 decimal places – the minimal change of the 2nd digit after the decimal place (0.01). For nano accounts, 1 pip is the minimal price change. CFD contracts are calculated using units of measurement depending upon the instrument in question. More detailed information can be found on the Contract specifications page. The trader's calculator does not consider hedged positions when calculating margin requirements. The results shown in the trader's calculator are indicative only, and may not agree with any figures calculated by MetaTrader 4 or MetaTrader 5. Please note: ^ The trader's calculator will include up to 5 positions by default. To increase the number of positions calculated, click "Add a position". You can change the parameters of any position and delete any unnecessary ones. ^ For positions left open overnight from Wednesday to Thursday, swaps are applied threefold.

The calculator does not reflect this, so if you are planning to trade in this period, you should multiply the swap amount by 3. Free profit and loss calculator. The profit and loss (P&L) calculator is a financial statement (often referred as an income statement) summarizing all revenues, costs and expenses within a specific time frame. The records provided in the statement show whether the company is able to generate more profit by increasing revenues, or cutting cost, or both. As we already know, businesses usually calculate profit and loss along with the balance sheet (shows what is owned and owed at a single moment) and cash flow statements (presents changes in accounts within specific period of time) which are necessary for comparison. When you ask yourself how to calculate P&L, there is a general form which begins by asking you to enter revenue (top line), deducting the costs of doing business, including cost of goods sold and operating, tax, in addition to interest expenses. The difference (bottom line) is net income (profit). It is important to compare income statements from different accounting periods in order to understand the numbers and make them more meaningful, as sometimes revenues might be growing but spending is increasing at a higher rate. There are plenty of examples and templates for you to produce your personal or business profit and loss statement online for free. General information about how P&L calculator works is provided above, but apart from the straightforward usage, it can be very efficiently implemented for trading. Although trading offers the opportunity to make profit by entering the market, well-educated investors always consider risk. Knowing how to calculate profit and loss while trading helps you clearly understand your success or failure rate as it directly affects the margin balance of your trading account. As was already mentioned you can easily find good, free P&L calculators, and by the way most trading platforms automatically calculate it for you, but it is important to understand how it actually works. How to calculate profit and loss of your trades. Currency trading is a very challenging market and in order to have as much money available for trading as possible, remember to consider profit and loss calculations of your trade as it directly affects your margin account.

The formula to calculate profit and loss of your trades is as follows: total margin balance in your account = initial margin deposit + realized and unrealized P&L. "Unrealized" in this case means that trade positions are still open (but can be closed any time). As soon as you close the trade the profit and loss calculation takes place and, in case of profit, the margin balance will increase, while in case of a loss it reduces. As unrealized P&L calculation is marked to market, it keeps changing constantly as your margin balance does. But do not panic, it is simpler than you think – in order to calculate P&L of a position, you need to check position size and by how many pips the price has moved. Position size multiplied by pip movement will show you the actual profit or loss. Simple example based on a free P&L calculator: if your account currency is in USD and you bought EURUSD at 1.09714, by the time the rate gets to 1.11278 you will make $1,564 profit if the size of your positions is 100,000 units. Once you have the profit and loss values, you can easily use them to calculate the margin balance available on your trading account. You do not have to calculate all your trades manually as usually it is done automatically by the brokerage accounts. Nevertheless it is important to understand the calculations to structure your trading ( it will help you to calculate the margin needed to hold a position depending on the leverage your trading account offers ).

By keeping all that in mind, you will manage your risks effectively and increase the profitability of your trading account. Calculator for Forex traders – how to use it? Always look for additional resources so as not to put yourself in a situation when trading feels like a complicated math class. One essential assistance tool is the Forex trader calculator which will help you perform important calculations so as not to lose track of your trades. There are many types of calculators FX offers, so let us go through the main ones and understand how to use them. The options of Alpari calculator: Alpari lets you analyse your potential costs and trading results without actually executing an order. To make this happen you just need to use a trade calculator that is very simple to use. First of all you have to select your account type, as different accounts come with various spreads and commissions. After this has been done, select a leverage you use or leave it as the default value. Then, simply select your account currency, as this has a significant impact on your margin requirement. Once the aforementioned set up is in place, select the instrument of your interest, a volume and direction of your trade, and then set the opening and the closing prices. Should you want to consider more positions into your calculations - click to add as many positions as you want.

Once you are done listing your positions, click on the button calculate and preview the value of a pip, the spread in pips and in dollars, swaps and required margin to open the trade. It might seem difficult but it is not at all since all important calculations are performed automatically: all you have to do is to fill the fields regarding your interest. The amount of numbers can be overwhelming but there are so many tricks and tips all over the iInternet which will help you understand more clearly how to use FX calculators in order to visualize your goals and monetary fundamentals. The Change from 4 Decimals to 5 Decimals. “Trading is not easy; however, becoming a trader is very easy. There are no obstacles whatsoever to anyone opening a trading account. I have long said that if trading were easy, big money would make the entry requirements so steep that it would be impossible for an average person to trade. Big money might do this through an education and exam system that would weed out most people. Even today, brokers have to take a Series 7 exam; however, passing this exam has nothing to do with success in the market.” - Dr. Van K. Tharp.

Many brokers’ platforms now use the 5th decimal place. Trading with a 5th decimal point can reduce the difference between the buy and sell price of a currency pair. The fifth decimal trading allows brokers to provide better execution and liquidity for clients. Some brokers are thus able to allow tighter spreads, more accurate pricing execution and better liquidity with less slippage. The tendency towards tighter spreads and better execution has been happening for some years. This has been made possible by improved prices that brokers are now receiving from their liquidity providers and should enable them in the nearest future to reduce their normal spreads further in some pairs to their client base. This kind of improvement to pricing policy enables the concerned brokers to quote all currency pairs to an additional decimal place. It means that all JPY pairs will be quoted to 3 decimals and all other pairs to 5 decimals. A number of brokers first introduced these changes to demo accounts to familiarize interested people with this feature, and later put the feature for their live clients. I’ve noted that some beginner traders are often confused by these decimal places, especially if they want to set their stop and take profit, or modify them later. What makes the matter worse for newbies is that some brokers still use 4 decimals.

What would a beginner do when shehe is practicing with a broker using 4 decimal places and later changes to a broker using 5 decimal places? Some brokers even retain 4 decimals to certain pairs and crosses while featuring 5 decimals for major pairs and crosses – all in the same platform. If you’re a beginner facing this kind of challenge, this article, which was prepared with trading examples from Metatrader, is for you. It shows how I personally handle this matter. For the sake of simplicity, spreads aren’t included in the examples below. 4 Decimal Places: For platforms (and pairs and crosses) using 4 decimals, all JPY pairscrosses are quoted to 2 decimals; other pairscrosses are quoted to 4 decimals. For example, the USDJPY would be quoted at 80.25, and the AUDUSD would be quoted at 1.0569. If I wanted to buy the USDJPY at that 80.25, having a stop of 50 pip and a target of 80 pips in mind, I’d set my stop at 79.75 and take profit at 81.05. If I wanted to modify the stop and the target after the trade was placed, I’d just type 50 in the stop loss area and 80 in the take profit area. If my profitloss was shown as points, and the price had moved up by 20 pips, it would simply be shown as 20. If the price moved down by 20 pips, it would simply be shown as -20. For the AUDUSD example, if I sold the pair short at 1.0569, having a stop of 100 pips and a target of 200 pips in mind, I’d set my stop at 1.0669 and take profit at 1.0369. If I wanted to modify the stop and the target after the trade was placed, I’d just type 100 in the stop loss area and 200 in the take profit area. If my profitloss was shown as points, and the price fell by 75 pips, it would simply be shown as 75. If the price rose by 60 pips, it would simply be shown as -60. 5 Decimal Places: For platforms (and pairs and crosses) using 5 decimals, all JPY pairscrosses are quoted to 3 decimal places; other pairscrosses are quoted to 5 decimals. For example, the EURJPY would be quoted at 115.292, and the USDCHF would be quoted at 0.84226. If I wanted to sell the EURJPY at that 115.292, having a stop of 70 pip and a target of 180 pips in mind, I’d set my stop at 115.992 and take profit at 113.492. If I wanted to modify the stop and the target after the trade was placed, I’d just type 700 in the stop loss area and 1800 in the take profit area. If my profitloss was shown as points, and the price had moved down by 120 pips, it might simply be shown as 1200. If the price moved up by 55 pips, it might simply be shown as -554. For the USDCHF example, if I bought the pair at 0.84226, having a stop of 185 pips and a target of 350 pips in mind, I’d set my stop at 0.82376 and take profit at 0.87726. If I wanted to modify the stop and target after the trade was placed, I’d just type 1850 in the stop loss area and 3500 in the take profit area.

If my profitloss was shown as points, and the price rose by 244 pips, it might simply be shown as 2449. If the price fell by 109 pips, it might be shown as -1096. When the profitloss is being displayed on a platform using 5 decimals, the last digit is almost negligible. The use of 4 decimal places is obviously easier, but it doesn’t matter much whether or not you’re trading on a platform that uses 4 decimals, provided you know how to set your stops and targets safely (without making costly mistakes). There are many trading platforms out there with different features (essentially leading to the same end), and every platform has dies-hard fans and opposition. The truth is, you should always practice hard to see for yourself and maybe you’d discover something that’ll help you greatly in your journey as a trader. Trading is a profession that’s definitely worth checking out. I hope this helps a little. Most newbies underestimate the importance of serious and protracted training by attending one-day seminars or trying to go thru short-cuts. Going back to Dr. Van’s quote above, it’s very important that you embrace trading principles that ensure your long-term survival in the markets. A good knowledge of how a trading platform functions is of little help if you can’t survive the market fluctuations as a trader. When trading, don’t get greedy: you just want to reduce your risk. If you survive long enough, you’ll eventually make money. NB: Please watch out for my coming articles with these titles: ‘Resist the Lure of High Risk – Part 3,’ ‘Carrying Out Stealth Raids in Weak and Strong Markets,’ ‘Worst-case Scenarios – Facts Are Sacred,’ ‘Effective Swing Trading in Forex,’ ‘Advanced Gap Trading – Trading with Insane Accuracy,’ ‘3 Recent Gap Trades,’ ‘Trading for a Livelihood – One of the Best Jobs in the World,’ ‘If I Were a Trading Neophyte…,’ ‘Developing the Right Attitude towards Losses - Part 3,’ ‘The True Holy Grail – The Long Sought for,’ ‘Achieve Success through Sensible Risk-to-reward Ratio (An Interview with a Trading Enthusiast),’ ‘ Clarifying Some Issues – Part 5,’ ‘Optimization of the USDCAD Hedging Strategy – Bringing the USDCAD to Subjection,’ ‘A CHF Breakout Strategy,’ ‘Overview of My Signals Strategies,’ ‘Is It Realistic to Give Guarantees in Trading?’ ‘The Proper Way of Using the Bollinger Bands – Learn the Truth from the Horse’s Mouth,’ ‘Monthly Trading Report (June 2011),’ etc. I end this article with one more quote from Dr. Van Tharp: “Most people spend many years learning their profession, but anyone can start trading today.

Can you imagine walking into a hospital and saying, “I think I’ll try some brain surgery today.”? It just won’t work. Yet you can open an online brokerage account, transfer in $100,000 and, suddenly, you are a trader. Trading with no preparation, however, could be as fatal to your account as performing brain surgery would be on that unlucky patient in the hospital.” Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature.

Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. 5 Digit brokers | 5 Decimal pricing Forex brokers. Forex brokers who offer 5 digit (5 decimal) pricing. 95% of all Forex brokers offer 5 digits pricing nowadays. The trend from Dealing desk to No-Dealing desk trading has clearly dictated the outcome. Now 4 digits brokers are a visible minority, with 5 digit pricing brokers dominating the market. Looking for 4 & 5 digits Forex Brokers? Try our Forex Broker Comparison. and select the field called "decimal pricing". 5 digit vs 4 digit broker.

Not so long ago the 5th digit in Forex pricing was rare, now it is a normal fact - a result of growing competition for clients among Forex brokers. Quotes with 5 decimal places allow better transparency and better fills for investors. Banks have been using the system of fractional quotes for centuries. When large money is involved, the smallest variation in quotes makes a significant impact. For traders the 5th digit means better transparency and ability to catch better deals. Forex brokers call it "precision pricing". For example, instead of 2 pips spread (1.5030 Bid 1.5032 Ask), a trader can get a 1.7 pip spread (1.5030 1 Bid 1.5031 8 Ask) Trading with 5 decimal pricing. Adding 5th decimal to the price quotes requires traders to adjust own pip calculations, such as profit and stop values, trailing stops, limit orders etc. For example, when trading with 4 decimal quotes, if a trader wants to capture 30 pips of Profit, he sets a Profit target value to 30. With 5 digit quotes a trader would need to input 300 to be able to exit with 30 pips Profit. The last digit "0" is a fractional pip. Expert Advisors trading with 5 digit brokers. Be sure to check if your Expert Advisor supports 5 decimal pricing. Not every EA does this, and you can get in trouble, or most likely will be unable to take any trades with such EA. A simple demo test of your robot with 5 digit broker will tell if any adjustments are needed. Copyright ©100Forexbrokers.

com | All Rights Reserved. Do you know another Forex broker with 5 decimal pricing? Please suggest by adding a comment below. New opportunities in trading on FOREX with 5 decimal places. Dear Clients! «Alpari» keeps on improving its services and their quality and in this connection we’re introducing a new pricing format with 5 decimal places on all FX quotes. This innovation allows us to provide our clients with tighter spreads in many popular currency pairs, more accurate pricing and execution. Starting from January 26, 2009 you’ll be able to test your trading strategy on alpari. demo accounts with the 5 decimal places pricing format. If you have open positions running they will be automatically adjusted to the new format.

Introduction of the new pricing format with 5 decimal places on alpari. classic and alpari. micro accounts is scheduled for February 9, 2009. Note! Please be aware that the new price feed implementation will affect your Expert Advisors. To make sure that your EA is brought into line with this change you must adjust settings of your pending orders «Buy Stop», «Sell Stop», «Buy Limit», «Sell Limit» and «Stop Loss» and «Take Profit» settings as well as any other pip value related parameters by multiplying your current levels by 10. For example, if you are currently using a stop loss level of 40 pips and a take profit level of 80 pips on each trade, in order to bring your EA in-line with the new pricing format, you must change your take profit level to 800 and your stop loss level to 400 respectively. In similar fashion to EA’s, some indicators could be affected by the new pricing format. To make sure your particular indicator works as you expect we advise that you contact your indicator provider to implement the necessary adjustments. The levels of all manually set orders: «Buy Stop», «Sell Stop», «Buy Limit», «Sell Limit», «Stop Loss» and «Take Profit», that are expressed in points should be multiplied by 10. For example, if you want to open a short position at 1.34500 and you would like to place a stop loss order at 1.34100, you should input 400 points as the stop loss amount. When selecting a «Trailing Stop» value please be aware that all the values listed have already been multiplied by 10. So if you would like to set a «Trailing Stop» of 40 pips, you should select 400 as the trailing stop value. All profit loss values expressed as Points in the Profit column under the Trade tab already incorporate the 5th decimal place adjustment. The maximum deviation feature allows clients to ensure trade execution within a specified number of pointspips. In order to accommodate the new pricing format you must multiply the desired value by 10. For example, if you would like to ensure being filled within 5 pips of the current quote, you must input 50. Should you have any questions do not hesitate to ask our specialists +44 8449 869559. Best Regards, Administration.

5-Decimal Pricing Forex Brokers. Forex price quotes are usually listed in decimal places. Prior to 2011, many retail forex brokers listed their forex quotes according to the 4 decimal pricing system. So a typical forex quote for the EURUSD would be stated as 1.32451.3248. However, a 5-decimal pricing system has been put in place, which serves to cut down the amount that traders pay on spreads. Recommended Forex Brokers that offer 5 Decimal Pricing: How does this work? We gave an example of a typical price quote for the EURUSD. This assumes that the 1 Euro is able to purchase 1.32480 USD from the broker. However, the introduction of a fifth decimal place further fractionates the last 0 digit. So if the last digit were to be displayed as 0.0, the introduction of the 5 th decimal place will make this 0.1 all the way up to 0.9. However, it is not possible to display two decimal points in a price quote as 1.32480.1 or 1.32480.6. So the display creates the 5 th decimal place as a superscript, written like this: EURUSD = 1.324501.32486 where 0 and 6 are fractions of the 4 th decimal place.

As a result of this fractionation, brokers can then provide tighter spreads, provide pricing which is more accurate and also give traders a trading environment with better liquidity and execution with reduced slippage. The change in pricing also affects the JPY currency pairs, which have traditionally been quoted to 2 decimal places. These are now quoted to 3 decimal places. Trading platforms started to see the changes as from 2011, and right now, there is hardly any broker which does not provide 5 decimal pricing. Despite the fact that several 5 decimal forex brokers have cropped up in the last three years, many beginner traders still do not understand how to use the platforms provided by these 5 decimal forex brokers. They get confused by these decimal places, especially as regards the effect of the change to stops, profit targets, entries and exits. Many expert advisor programmers also have the same problem, as the changes have altered the way forex robots interpret parameters. It is for this category of market participants that the explanation of how to utilize pricing by the 5 decimal forex brokers is prepared. Understanding the 5 Decimal Forex Brokers Pricing.

a) 4 Decimal Pricing: This is how the pricing system for 4 decimal forex brokers works. These platforms also provide 2 decimal pricing for all JPY pairscrosses. If for instance, we have the USDJPY quoted at 81.55, and we have the EURUSD quoted at 1.3369, how would the stops and target areas be calculated? If the trader wants to have a 50 pip stop loss and an 80 pip profit target the stop would be set at 81.55 – 0.50, = 81.05. The take profit would be set at 81.55 + 0.80 = 82.35. The decimal pricing system also affects how a trader’s profit or loss is displayed. If the price moves to 81.84, the price has moved into profit territory by 29 pips, and this would be shown on the platform’s terminal window as 29. If the price fell to 81.25, then the price has moved by -30 and this is what would be shown on the platform. For illustrative purposes, the spread calculation has been omitted. Taking the EURUSD as an example, if you sell the pair at 1.3369, with a 70 pip stop loss and a take profit target of 200 pips, the stop would be set at 1.3369 – 0.0070, which is at 1.3299. Likewise, the take profit would be set at 1.3369 + 0.0200, which is at 1.3569. The display of profit or loss would be shown as either -50 if the price falls to 1.3319, + 100 if price rises to 1.3469. b) Pricing by 5 Decimal Forex Brokers. The previous examples were easy as most of you may be familiar with 4 decimal pricing.

But what happens when the price is further decimalized by 5 decimal forex brokers to create a 5 decimal pricing format? This is how it will play out. Stops and Targets. Take for instance, the GBPJPY would be quoted at 145.352. A short order on the GBPJPY at that price with a 60 pip stop loss and a 180 pip profit target would mean that prices for each would be listed at 145.352 + 0.600 (145.952), and at 145.352 – 1.800 (143.552). Take careful not of this. This is because in the 5 decimal pricing system, we do not start counting the pips from the last decimal because this is a fraction of the 2nd decimal place (Yen crosses) or of the 4 th decimal place in other currencies. Taking the AUDUSD as an example, a long order at 0.84258, with a 155 pip stop loss and a take profit target of 310 pips, would lead us to set the price in the order box as 0.84258 – 0.0155 (0.82708) and take profit at 0.84258 + 0.0310 (0.87358). Profit and Loss Display. If profit and loss is shown as points (as opposed to amount of dollars in unrealized profitsloss) and the price had fallen by 149 pips, it will be shown as -1490 (which is 149 and a fraction of 0). If the price moved up by 185 pips, it will be shown as 1850 points (which is 185 and a fraction of 0 added to it). 5 Decimal FX Brokers. There are several 5 decimal FX brokers in the market, and you will be able to see a comparison table which shows their various features. But the most important metrics you should be conversant with are: a) How to interpret the 5 decimal pricing system.

b) How to set stop losses and take profit targets. c) How to interpret the unrealized profits and losses as they are displayed on the terminal window of your platform. Print 5 Decimal place. how to get 5 decimal places because when i used OrderClosePrice() it will round off to 4 decimal only but broker is 5 decimal. i think there are no 5 decimal because double only 4 decimal. double value=StrToDouble("1.2345678"); Print(value); Double can store values to the 15th digit at least. tbh i don't know what's the accuracy of double beyond 15th digit. It's iffy at 15 digits anyway and it's highly probable you don't need more digits for financial math. Floating-point constants can assume values from -1.7 * e-308 to 1.7 * e308.

If a constant exceeds this range, the result is undefined. However the Print() function normalizes double value to 4 decimal places by default. Always use Print in conjuction with NormalizeDouble(X, Digits). Or any string operation that involves doubles for that matter. I use NormalizeDouble when I'm calculating position sizes in order to truncate everything after the first decimal place. Is this not necessary? Currency in 5 decimal places. There is a requirement to maintain STD cost, purchase price etc. with 5 decimal places . The standard transactions like Purchasing (AP), sales (AR) etc. would continue to happen at 2 decimals. This can be achieved, by creating a new currency copying the reference currency. E. g. USDN copying USD and following are the steps: Define a new currency in Customizing with transaction OY03. OY04 to assign number of digits to new currency. OBBS to define conversion factors for currency conversion. OB08 to enter exchange rates. XK02 to assign new currency to Vendor Master.

ME11 to create a Purchase Info record. Create MM documents with the new extended price. OB90, define rounding rule for currency. What I only wanted to understand was are there any ramifications down the line if we follow this method? Or what all precautions do we need to take? Is there any learning from any of existing projects where we have done this? Increase Currency Exchange Rate Decimal Places from 5 to 6 digit. Currently on OB08 there is an option to put 5 decimal places while maintaining currency exchange rates. My client have some requirement up to 6 digits. actually banks dealing foreign currency rates up to 6 digit and SAP system taking up to 5 digits. While posting in foreign currency, system convert it into local currency on the basis of maintained exchange rate in OB08. for this reason there is little fraction difference between bank statement posting and bank book posting. If we carry the same way later we can not reconcile bank statement. Please let me know if there is any possibility to extend these decimal places.


  • 5 decimal places forex