MT4 Point Calculations

[tijo45]

Does anyone know how Point is calculated in Meta trader 4?

The documentation for Point says  - ` The current symbol point value in the quote currency.`

But what does that mean? I noticed that in meta trader sometimes Point is 0.1 other times its 0.000001 for the same currency pair.

Any insight would be appreciated.

[William Roeder]

tijo45: But what does that mean? I noticed that in meta trader sometimes Point is 0.1 other times its 0.000001 for the same currency pair.

1. Your second sentence is totally false.

2. 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()