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4 and 5 decimal places
In different brokerage companies offering their services in Forex, you can find a trading account with 4 and 5 decimal places. If we take one of the most popular among currency speculators EUR/USD, then the quote can be in the form 1.25105, and can be rounded up to 1.2510. The interbank exchange of currencies is carried out with consideration of the fifth decimal place. Therefore, ECN quotes the same we see exactly five digits. At the moment an increasing number of companies offers its clients to work with 5 digits after the decimal point in the prices of trading instruments.

How is the work with 4 and 5 digits? Rounding to four decimal places reduces the accuracy of the quotes, which would need scalpers. If a person is working in the market of long-term agreements are not so important last sign in price, for short term trading such rounding significantly. The smaller the transaction size in points, the greater the role played by the accuracy of the quotes. ECN accounts offer speculators only work with 5 decimal places, providing the best possible precision of the values of the market price.

I advise you to read about the two types of order execution Market Execution and Instant Execution. The first option is more common on accounts with 5 digits after the decimal point, and the second option on accounts with 4 digits.
 

On the other hand, not all people can quickly absorb a large number of digits. Some traders still prefer to work on accounts where only 4 decimal places. So to calculate the level to perceive the information that goes from the market. A number of brokerage firms offer the customer to choose which quotes to use in their work. Speculator, registering the Deposit, select the number of digits in the quote. Some examples of such companies:

• Instaforex
• Roboforex
• LiteForex

Now let us list a few trusted brokers with fast ECN accounts:

• Alpari
• MaxiMarkets
• FXopen

Recall that the accuracy of the quotes is very important, mainly for scalpers. Some trading systems may on the contrary more successful to work with 4 digits, if their algorithm is set to a fixed spread value.

Floating spreads and 5 digits

Most often, six-figure quotations (five decimal places) are used together with a variable spread. This set was often used in the accounts of various brokerage firms. The fee charged for each, made on the interbank market, the agreement, as well not fixed. Dealing centers (DC) are trying to accurately simulate on trading accounts of the situation of the real market. Perhaps that is why companies seek to move to five decimal places.
 

On the trader data manipulation with a range of different trading conditions affected only positively. The higher the accuracy of the quotes, the easier it is to earn doing scalping, the more detail you calculate the value of a variable spread and so on. Rounding the market price values for the results of a large number of transactions may have a negative impact on the amount of profit earned in trade.

On the other hand, speculators who employ a long-term strategy probably will not notice the difference when switching from one type account to another, differ only in the number of characters. Some inaccuracy quotes against the average result of the long transaction will be value at the level of accuracy.

Category: Forex | Added by: (05.11.2017)
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