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.
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.
A point is one pip. If EurUsd is at 1.2080 one point would be 0.0001. So if you
want to set a TP on the EurUsd of 50, you have to add that to 1.2080 but adding
50 to 1.2080 would give you 51.2080 so you have to multiply 50*Point to get 0.0050.
For currencies with 4 places like EurUsd and GpbUsd that have 4 places, like 1.
2080 or 2.0250 one point is 0.0001, for the UsdJpy that has only 2 places like
122.01, one Point is 0.01
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.
Point is a pip in terms of decimal. So a trader would say it has moved 10 pips so that would be 10*point. However I have found that some traders refer to the fifth decimal place as a '10th of a pip' which in IMHO gets away from the definition I first saw of a pip being the smallest price movement the curency moves. It is easier to talk about a pip without all the messy 0.000's that go in front of it. A point in a sense is the actual value of a pip.
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.