Weird Plobrem.. be careful | Forex Factory

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Weird Plobrem.. be careful

  • #1
  • First Post: Jul 27, 2007 4:35am Jul 27, 2007 4:35am
Ok guys I have been trading in forex for almost a year now (including demo). I want to give my examples in Eur/Usd for the problem and questions I have.

Questions first. How many digits do you have after the point in Eur/Usd?
For example at the moment that I am typing this message EurUsd is 1.3665... The broker I just switched whom also installed their new internet trading system, has 5 digits after the dat... The price is 1.36654 in their program. When I used to make 1 lot trade in Eurusd, every pip would be 10 dollars and in each pip raise i would gain an additional 10 dollars... In other words the profit or loss would be a multiple number of 10. However in my new trader the pair raises like this. 1.36654 to 1.36657 with a difference of 0.00003 pips which is 3/10 of a regular pip... and such a raise is 3 dollars because it is .3 of 1 pip.

My broker said the forex market will be like this in the future. 1 pip rise would mean a raise from 1.36654 to 1.36664 which is like 1.3665 to 1.3666.. which is the regular... But is this also true for other brokers as well?

a raise from 1.36654 to 1.36655 is .1 of a pip raise.

Also the problem I had was a weird one... when the price was at 1.37039 I bought 1 lot of the pair... (which is around 1.3704) though when i bought the pair, the computer set my buying price at 1.3741 and in a second, i was around 380 dollars in debt

I am thinking since the spread is +2 in Eurusd... and since i bought when the pair was 1.37039, my buying with the spread became 1.37041 and than the computer (server) somehow made it 1.3741...

My broker is an EXCELLENT one, They have great customer service and they will be even better in the future.. However this internet system is through another broker. And at one point they claimed that the pair HIT 1.3741 and than came to 1.3703... Which is extremely funny since this move doesn't show even in their M1 charts. Though the pair only managed to hit 1.3741 2 hours before the incident...

I just wanted to share this experience and wanted people to be VERY careful...

By the way my broker of course canceled this transaction and I got my loss back so I am thankful to that.
  • #2
  • Jul 27, 2007 4:53am Jul 27, 2007 4:53am
Oanda has something they call a "pipettes" which is the same as you describe.
You can choose to view or not view from the Tools/User Preferences.
I haven't experienced a slippage as u describe. Perhaps there is a bug int the 'update' of your borkers software. Is it an MT4 borker as I don't recall seeing this in an MT4 platform
In trading, there is no bullshit. You either make money or you don't.
  • #3
  • Jul 27, 2007 5:04am Jul 27, 2007 5:04am
Quoting mrgreen
Oanda has something they call a "pipettes" which is the same as you describe.
You can choose to view or not view from the Tools/User Preferences.
I haven't experienced a slippage as u describe. Perhaps there is a bug int the 'update' of your borkers software. Is it an MT4 borker as I don't recall seeing this in an MT4 platform
yeah the 5th digit is killing me. I wish metatrader platform or my broker had that too... As far as I know the 5th digit might move from 1-9 but it wont even be a full 1 pip movement.
  • #4
  • Jul 27, 2007 6:38am Jul 27, 2007 6:38am
What I really don't like is the roundoff game.

I'll be in a trade with Oanda, and I'm looking at my account page which says I have 10 pips profit. I bring up a window to close the trade, it says I have 10 pips profit. I click and close the trade, then check my activity board, and about 3 times out of 4, I lose a pip.

Other times I'll put in a limit order for, for example, 10 pips profit. Again I'm looking at 10 pips in the profit wiindow, and I'm waiting while it hits that over and over, and finally I click out and only get 9. Or it reverses while I'm watching and I lose it all in a blink....

I'll check it out fully to be fair, because I like Oanda in general, but if they're slipping me a pip on all these market orders, I'll think twice before using them when I'm ready to fund on a big scale.
  • #5
  • Jul 27, 2007 1:22pm Jul 27, 2007 1:22pm
Quoting Alfa159
The broker I just switched whom also installed their new internet trading system, has 5 digits after the dat...
My MT4 broker (WSD, based in New Zealand, where I live) also uses 5 decimal places for all pairs, except those involving the JPY, which have been extended to 3 decimal places. The extra digit certainly takes some getting used to. When viewing prices, especially in the Market Watch window, I have to mentally exclude the final digit, which gets very tiring after a while (or perhaps I'm just getting too old! ). Also, when I use the crosshairs to measure the distance between two price levels, the number of pips is 10x greater than the true value, e.g. 830 pips instead of 83. I also find this confusing.

Another difference I've experienced (not sure if this applies to you) is that the midpoint (between the current tick's bid and ask price) gets plotted on the chart, whereas every other MT4 broker whose demo I've tested plots the bid price (and you can also optionally have the ask price show by pressing F8 and checking the relevant box). This "feature" carries over into the trading blotter, where the prices in the various columns are not consistent with each other.

Additionally, with WSD's version of MT4, the high of each candle reflects the highest ask price for the period, while the low is the lowest bid price. This means that virtually every candle on the chart has both an upper and lower "wick", cluttering the chart, and making the visualization of certain candle patterns virtually impossible.

The end result is that I use a second broker's MT4 platform to perform my analysis, and WSD's to place the orders. Cumbersome.

David
  • #6
  • Jul 27, 2007 1:58pm Jul 27, 2007 1:58pm
Quoting blueruby
What I really don't like is the roundoff game.

I'll be in a trade with Oanda, and I'm looking at my account page which says I have 10 pips profit. I bring up a window to close the trade, it says I have 10 pips profit. I click and close the trade, then check my activity board, and about 3 times out of 4, I lose a pip.

Other times I'll put in a limit order for, for example, 10 pips profit. Again I'm looking at 10 pips in the profit wiindow, and I'm waiting while it hits that over and over, and finally I click out and only get 9. Or it reverses while I'm watching and I lose it all in a blink....

I'll check it out fully to be fair, because I like Oanda in general, but if they're slipping me a pip on all these market orders, I'll think twice before using them when I'm ready to fund on a big scale.

OMG, i was about to call them about that. I had long AUDUSD and GBPJPY that ended with break even. In the p/l secntion i ended up with negative. I also would rethink when i'm ready to fund big time. Cause 1 pip in teh future might worth few bucks rather than cents and I can't take that chance.
  • #7
  • Jul 31, 2007 6:55am Jul 31, 2007 6:55am
Quoting hanover
My MT4 broker (WSD, based in New Zealand, where I live) also uses 5 decimal places for all pairs, except those involving the JPY, which have been extended to 3 decimal places. The extra digit certainly takes some getting used to. When viewing prices, especially in the Market Watch window, I have to mentally exclude the final digit, which gets very tiring after a while (or perhaps I'm just getting too old! ). Also, when I use the crosshairs to measure the distance between two price levels, the number of pips is 10x greater than the true value, e.g. 830 pips instead of 83. I also find this confusing.

Another difference I've experienced (not sure if this applies to you) is that the midpoint (between the current tick's bid and ask price) gets plotted on the chart, whereas every other MT4 broker whose demo I've tested plots the bid price (and you can also optionally have the ask price show by pressing F8 and checking the relevant box). This "feature" carries over into the trading blotter, where the prices in the various columns are not consistent with each other.

Additionally, with WSD's version of MT4, the high of each candle reflects the highest ask price for the period, while the low is the lowest bid price. This means that virtually every candle on the chart has both an upper and lower "wick", cluttering the chart, and making the visualization of certain candle patterns virtually impossible.

The end result is that I use a second broker's MT4 platform to perform my analysis, and WSD's to place the orders. Cumbersome.

David
actually thats what I will do.. I will use Alpari Uk's demo account to make my analysis but place my orders through my own broker...

I really dont like 5 digits after the decimal.. I dont know why they did this. it is no big deal but confusing.
  • #8
  • Jul 31, 2007 7:07am Jul 31, 2007 7:07am
One can find in-depth discussions of Oanda's 5th digit and how it really works on the Oanda forums.
  • #9
  • Last Post: Aug 2, 2007 11:39am Aug 2, 2007 11:39am
Ok guys.. Metatrader is starting to upset me deeply...

I was long at gbp/jpy at 241.80 with market watch 17:09 (gmt +2)
The price was at 242.70 17:57 i clicked CLOSE position... and the pair closed at 241.09....

So is this Metatrader's fault? or the broker's server's fault...

there is a 161 pip difference as you could calculate.

What might cause this?

by the way my broker covered my loss and profit too but I wonder doing this mistake with 10 lots instead of 1... Can you imagine the loss?

What the hell?
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