Confused about volume size on mt4

[will]

Hi, I have a demo mt4 account with oanda. I placed a sell order with 0.50 volume size and it is giving me $0.50 a pip why isn't it $5 a pip I thought 0.50 was 5000 units of currency please help thanks

[Keith Watford]

willwinner:
Hi, I have a demo mt4 account with oanda. I placed a sell order with 0.50 volume size and it is giving me $0.50 a pip why isn't it $5 a pip I thought 0.50 was 5000 units of currency please help thanks

Different accounts may have different contract sizes

What instrument are you trading?

What do you define 1 pip as?

[William Roeder]

willwinner:  0.50 volume size and it is giving me $0.50 a pip why isn't it $5 a pip I thought 0.50 was 5000 units of currency please help thanks

1. There is Tick, PIP, and Point. They are all different in general. A tick is the smallest change of price. A Point is the least significant digit quoted. In currencies a pip is defined as 0.0001 (or for JPY 0.01)

   On a 4 digit broker a point (0.0001) = pip (0.0001). [JPY 0.01 == 0.01] On a 5 digit broker a point (0.00001) = 1/10 pip (0.00010/10). Just because you quote an extra digit doesn't change the value of a pip. (0.0001 == 0.00010) EA's must adjust pips to points (for mq4.) In currencies a tick is a point. Price can change by least significant digit (1.23456 -> 1.23457)

   In metals a Tick is still the smallest change but is larger than a point. If price can change from 123.25 to 123.50, you have a TickSize of 0.25 and a point of 0.01. Pip has no meaning.

   This is why you don't use TickValue by itself. Only as a ratio with TickSize. See DeltaValuePerLot()

2. Generally it is ~$10.00 USD per pip per standard lot. Standard lot is 100,000 units. Your 0.50 as $5000 units are mini-lots or you're confusing point with pips.