Unresolved Issue with PointValue Calculations for Specific Broker on Indices Trades
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I'm aware that the subject of point value, delta lot value, and related calculations has been extensively discussed on this forum. Until recently, none of my customers had encountered issues with point value calculations when using my products. However, I've encountered a unique problem for a client who is trading indices with a specific broker, and the existing methods for calculating point value no longer seem to apply.
Typically, the calculation for point value is straightforward: divide the tick value by the tick size. Many brokers already adjust the tick value to account for any discrepancies between the account currency and the base currency of the indices being traded.
In my current dilemma, both the account currency and the symbol currency for US30 are in USD. The tick size is 1, and the tick value is 5. By these metrics, my calculation yields a point value of $5 per lot. However, when executing a trade, the estimated point value is drastically different, showing as $0.1 per lot.
I'm baffled by this inconsistency and am at a loss for how to develop a workaround, as the calculations should be straightforward given the available data. The disparity introduces a factor of 50 that I cannot account for.
If anyone has insights into this issue or suggestions for a workaround, I would greatly appreciate your input.
Best Regards,
Lukas Roth