Pips, Not Ticks
Please correct me if I'm wrong. I believe ticks are the smallest increment that an asset can change. So for a broker that uses 5 places after the decimal, the last value is tick and the 4th is pip.
So you went long at 1.12205 and the current price is 1.1241, you're up 20.5 pips. Not a big deal, but I thought that I should bring it up.
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Williams Chris
| 06.07.2016
- Modified by PTMC team 21.09.2016, 12:40
Hello chrisbiz1e, thank you for your response.
Yes, you are correct, minimal price increment of each instrument is one tick(pip is synonym of tick). Ordinary situation is when tick = pip, but sometimes some brokers that uses 5 places after the decimal use another formula 1 pip = 10ticks(like OANDA for example). It names fractional ticks. To calculate P/L(in absolute value) always used minimal price increment(tick) but if we want to understand how much does this p/l value have ticks(pips) we should recalculate our p/l value in offset via one of these formulas: tick = pip or pip = 10 ticks
