I may add D1000, D10000,
=
D1--do not eliminate any digit,
D10-- eliminate last digit of the price if applicable
D100--eliminate last two digits of the instrument price if applicable.
Example: EURUSD--D100 not applicable, since we all used to ignore last digit(fifth place after decimal point)
I face new cases regarding instruments with very high prices like BTCKRW and BTCJPY.
is D-Theory a stale concept??
definitely NO. it is very very crucial in comparing b/w instruments speed and pip values.
BTCKRW price for example is now above 30 million, and the pair usually without decimal point, only long integer price with almost all brokers.
so iam thinking to add D1000.
Now BTCKRW price is 37,654,321
let us compare it to EURUSD or better to GBPNZD??
PV = PipValue
PV of 1 LOT BTCKRW is 1 KRW (since KRW is the pair quote currecy-------BTC is the base currency)
YYY=BTC
XXX=KRW
DDD=USD--->Account Dominating currency
converted to USD:
PV of 1 lot = XXXDDD = KRWUSD
We know ffrom basics of elementry math that:
A/B = 1/(B/A)
Therefore:
KRW/USD = 1/(USD/KRW) = 1/USDKRW
So: PV of BTCKRW is the reciprocal of USDKRW price.
USDKRW now is 1114.7637
therefore PV of BTCKRW = 1/1114.7637 = 0.000897005 USD
so:
1) if BTCKRW moves from 37,654,321 to 37,654,322 your P/L is 0.000897005 USD.
therefore:
2) if BTCKRW moves from 37,654,321 to 37,654,331 your P/L is 0.00897005 USD.
3) if BTCKRW moves from 37,654,321 to 37,654,421 your P/L is 0.0897005 USD.
4) if BTCKRW moves from 37,654,321 to 37,655,321 your P/L is 0.897005 USD.
5) if BTCKRW moves from 37,654,321 to 37,664,321 your P/L is 8.97005 USD.
6) if BTCKRW moves from 37,654,321 to 37,754,321 your P/L is 89.7005 USD.
which of six cases can be compared to EURUSD that we know its pipValue is 10 USD fir 4th digit movement by 1 pips??
ans: 5th case?? !! ??
=
D1--do not eliminate any digit,
D10-- eliminate last digit of the price if applicable
D100--eliminate last two digits of the instrument price if applicable.
Example: EURUSD--D100 not applicable, since we all used to ignore last digit(fifth place after decimal point)
Attached Image
I face new cases regarding instruments with very high prices like BTCKRW and BTCJPY.
is D-Theory a stale concept??
definitely NO. it is very very crucial in comparing b/w instruments speed and pip values.
BTCKRW price for example is now above 30 million, and the pair usually without decimal point, only long integer price with almost all brokers.
so iam thinking to add D1000.
Now BTCKRW price is 37,654,321
let us compare it to EURUSD or better to GBPNZD??
PV = PipValue
PV of 1 LOT BTCKRW is 1 KRW (since KRW is the pair quote currecy-------BTC is the base currency)
YYY=BTC
XXX=KRW
DDD=USD--->Account Dominating currency
converted to USD:
PV of 1 lot = XXXDDD = KRWUSD
We know ffrom basics of elementry math that:
A/B = 1/(B/A)
Therefore:
KRW/USD = 1/(USD/KRW) = 1/USDKRW
So: PV of BTCKRW is the reciprocal of USDKRW price.
USDKRW now is 1114.7637
therefore PV of BTCKRW = 1/1114.7637 = 0.000897005 USD
Attached Image
so:
1) if BTCKRW moves from 37,654,321 to 37,654,322 your P/L is 0.000897005 USD.
therefore:
2) if BTCKRW moves from 37,654,321 to 37,654,331 your P/L is 0.00897005 USD.
3) if BTCKRW moves from 37,654,321 to 37,654,421 your P/L is 0.0897005 USD.
4) if BTCKRW moves from 37,654,321 to 37,655,321 your P/L is 0.897005 USD.
5) if BTCKRW moves from 37,654,321 to 37,664,321 your P/L is 8.97005 USD.
6) if BTCKRW moves from 37,654,321 to 37,754,321 your P/L is 89.7005 USD.
which of six cases can be compared to EURUSD that we know its pipValue is 10 USD fir 4th digit movement by 1 pips??
ans: 5th case?? !! ??
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