What is the difference between 4 digit broker and 5 digit broker? - page 2
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Less tick and less possibility to close in your favor on for digit - but also bigger chances of slippage manipulation on 5 digits
No difference
More ticks on 5 digit broker
Dear, I am scalper. That’s way, I need to use 5 digit broker thus I can much clear sense of market and able to make good analysis. You know, scaling is very sensitive trading style from others. But, if you have proper trading knowledge then, you can be a successful trader within very quick time by scalping. By the way, I invested my real money in after knowing their regulation. Because, I know 4 digits or 5 digits is less important issue from broker regulation. This regulated broker permits any kind of trading style.
Does it?
Try it
This is important topic but it feels freezes,looks nobody interested in it,as to my poor knowledge,5 digit is latest ver and method of brokers ,may be in future 6 dig will be introduced,for every one 5 dig is best because it is mostly time in motion.but slow systems might be busy all time because updating every indicator at every tick.1 pip in 4 dig means 10 pip in 5 dig,so when market moves in between 10 to 20 pip range in 4 dig (that is called choppy and ranging market,no trendy) but at the same time (10 to 20) means 100 to 200 pips in 5 dig,so we can trade,no matter for few pips,as for brokerage commission,it is same,3 pip in 4 dig means 30 pips in 5 dig.only one problem is considerable,it needs slippage in orders execution,if you know it,how fast it is running and your orders might not be accepted,needs requote or slippage must be applied.
mntiwana
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Officially they started with 5 digit data feed in order to to have more precise price changes
Unofficially : they did it in order to introduce false ticks (and price changes). Nothing to do with improvement - even today you can find good brokers that work with 4 digits
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Slippage does not depend on 4 or 5 digits. It exclusively depends on broker
as to slippage,i was means,if in 4 digit moves 1 pip,in 5 digit same pair at same time moves 10 pips,so we consider fast move,and as you all knows it well.......from your machine to inter bank(the last destination of your orders) needs minimum 7 servers and 2 time satellite interference for to travel data and it needs some milliseconds,possibly market move ahead or back till reach the order when market is fast due to 5 digit ..........(if your broker do not keep your order at his own server and let it pass ahead to interbank)............the hidden technique is....for example your broker have orders of same pair(EUR/USD) of 500 volume in total,where as 100 volume is sell and 400 volume is buy,from them,he will be keep held sell and buy in equal volume,as 200 volume he will not pass through but will be keep them 200 volume with him and rest 300 volume he will be send forward to inter bank.so till broker needs less milliseconds when till interbank it needs more millisecond,so there is a possibility not accepted orders and needs reqoute,so slippage may required.it is just my idea and possibility,not necessarily happens this way every time.
Orders are not executed on your PC
They are executed on Brokers PC, so, theoretically they should be executed all at the same conditions for all users (provided that they have IT support strong enough)
of course you are right,orders are filled by users,broker can not filled or execute any thing by his own without user intention,broker is a step in between user and market for to verify conditions are met according to brokers specifications or not.some orders are kept with broker as i explain in above when some orders are forwarded to market after broker verification,so now it is your opinion and choice,from where you start calculation,from your PC or from broker server.your PC is also considered as broker initial terminal that is in users hand.
with regards
Isn't then a problem in the EA (that it does not recognize 5 digit brokers)? If it was made for 4 digit brokers then it should be adjusted to recognize 5 digit brokers automatically
had this problem before when switched to a 5 digit broker for the first time, needed a developer to adjust my ea
had this problem before when switched to a 5 digit broker for the first time, needed a developer to adjust my ea
Almost all need to be adjusted if they were written for 4 digit brokers