What is a pip?
Sounds like a simple question with simple answer, but have found it is not. Some say the smallest change in price, but that means confusion between 4 digit and 5 digit brokers. BTW pip is not defined in our glossary and searches revealed nothing.
This comes up time and time again when dealing with programed Expert Advisers (EAs), where an input is required in pips (ie, stop loss, take profit, etc.). Some gurus explicitly say, "if we say 3 pips put in 30 if you have 5 digit broker". Some say, after inquiry, "if we say 3 pips put in 3, since we work from the left in the price quote, and 5 or 4 digit broker makes no difference". Others say nothing.
I suggested once, "Do you mean 30 points in a 5 digit broker is equal to 3 pips?". The response was , "Are you talking about stocks?".
Needless to say putting in 3 when 30 is required or 30 when 3 is the proper value is probably a disaster.
Fairly new to Forex, so what is the answer or better what is a solution. Some kind of standard is needed. Who better to set that standard/convention than FPA?
Sounds like a simple question with simple answer, but have found it is not. Some say the smallest change in price, but that means confusion between 4 digit and 5 digit brokers. BTW pip is not defined in our glossary and searches revealed nothing.
This comes up time and time again when dealing with programed Expert Advisers (EAs), where an input is required in pips (ie, stop loss, take profit, etc.). Some gurus explicitly say, "if we say 3 pips put in 30 if you have 5 digit broker". Some say, after inquiry, "if we say 3 pips put in 3, since we work from the left in the price quote, and 5 or 4 digit broker makes no difference". Others say nothing.
I suggested once, "Do you mean 30 points in a 5 digit broker is equal to 3 pips?". The response was , "Are you talking about stocks?".
Needless to say putting in 3 when 30 is required or 30 when 3 is the proper value is probably a disaster.
Fairly new to Forex, so what is the answer or better what is a solution. Some kind of standard is needed. Who better to set that standard/convention than FPA?
