Need better explanation of "Point"

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Richard Salisbury
25
Richard Salisbury  

In the MLQ4 Reference, there is a pre-defined variable called Point with the following definition: "The current symbol point value in the quote currency." Being new to this world of trading, I was wondering if someone could provide a better explanation of what Point is, maybe in laymen's terms.

Thank you very much for your time.

okwh
1643
okwh  

maybe is 1 at the final digital position of 5 effective digitals of price.

in other word, smallest count of price of one kind of money.

kevin
5
kevin  

<Deleted as outdated>

Geoff Greaves
8
Geoff Greaves  
kmrunner:

<Deleted as outdated>

I've come here while looking for the explanation of 'point' to find out why BuyOrder.MQ4 is placing an SL of 4 pips, not 40. It seems to me that the above explanation is wrong or my SL would be 40 - it must be that a point is a tick so if you have a five point broker it's only a tenth of what it would be with a four point broker.

On Brent 112.85 the script works fine, one pip per tick, but on EURUSD 1.41035 it doesn't, one pip per ten ticks.

Ickyrus
885
Ickyrus  

<Deleted as outdated>

Jeffrey Irick
339
Jeffrey Irick  
GeoffGreaves:

I've come here while looking for the explanation of 'point' to find out why BuyOrder.MQ4 is placing an SL of 4 pips, not 40. It seems to me that the above explanation is wrong or my SL would be 40 - it must be that a point is a tick so if you have a five point broker it's only a tenth of what it would be with a four point broker.

On Brent 112.85 the script works fine, one pip per tick, but on EURUSD 1.41035 it doesn't, one pip per ten ticks.


Hi, Geoff

With a 5 digit broker, a point and a pip are not the same thing. A point is a 10th of a pip which, for a 5 digit broker, is the smallest possible price move for a currency pair. Therefore, 40 points is 4 pips. If you want your SL at 40 pips, you have to set it to 400 points. You have the same type of scenario if you're looking at pair like USDJPY, which is quoted to 3 decimal places. The second decimal place is a pip and a point(or tick) is the third decimal place, so it's still a tenth of a pip. I went through the same confusion you're going through until I figured out what was going on. MetaTrader asks for points when you specify SL, TP or Trailing Stops - not pips. Just multiply the number of points it asks for by 10 and you're good to go.

Simon Gniadkowski
17214
Simon Gniadkowski  
ProfessorMetal:

Hi, Geoff

With a 5 digit broker, a point and a pip are not the same thing. A point is a 10th of a pip which, for a 5 digit broker, is the smallest possible price move for a currency pair. Therefore, 40 points is 4 pips. If you want your SL at 40 pips, you have to set it to 400 points. You have the same type of scenario if you're looking at pair like USDJPY, which is quoted to 3 decimal places. The second decimal place is a pip and a point(or tick) is the third decimal place, so it's still a tenth of a pip. I went through the same confusion you're going through until I figured out what was going on. MetaTrader asks for points when you specify SL, TP or Trailing Stops - not pips. Just multiply the number of points it asks for by 10 and you're good to go.

Please don't dredge up old threads, I doubt Geoff is still waiting after 2 years for a reply.

Thread started - 2007.07.27

Jeffrey Irick
339
Jeffrey Irick  
RaptorUK:

Please don't dredge up old threads, I doubt Geoff is still waiting after 2 years for a reply.

Thread started - 2007.07.27


Sorry about that, Raptor. I didn't notice the thread start date or the post dates. If I had I wouldn't have commented. I should have been paying more attention. Yeah, I sort of doubt he's still waiting for a reply. **chuckle**
richard96816
480
richard96816  
Jeffrey Irick:

Sorry about that, Raptor. I didn't notice the thread start date or the post dates. If I had I wouldn't have commented. I should have been paying more attention. Yeah, I sort of doubt he's still waiting for a reply. **chuckle**

Unfortunately, MetraQuote still hasn't fixed their documentation.

One sentence to explain this mess is clearly not enough.

ffoorr
1351
ffoorr  
richard96816:

Unfortunately, MetraQuote still hasn't fixed their documentation.

One sentence to explain this mess is clearly not enough.

if there is 5 digit, the value point is this : 0.00001

if there is 3 digits, the value point is this : 0.001

William Roeder
20233
William Roeder  
What is a TICK? - MQL4 and MetaTrader 4 - MQL4 programming forum

Using Point means code breaks on 4 digit brokers, exotics (e.g. USDZAR where spread is over 500 points,) and metals. Compute what a PIP is and use it, not points.
          How to manage JPY pairs with parameters? - MQL4 and MetaTrader 4 - MQL4 programming forum
          Slippage defined in index points - Currency Pairs - Expert Advisors and Automated Trading - MQL5 programming forum

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