Why Change?
Part of life is change, and I guess that is what we should get used to is change itself. Because nothing ever seems to stay the same very long any more. I am talking about how my forex broker just decided to change the way we look at pips on the platform I trade on. Now they are adding another zero after the decimal making it so I have to look at everything in tenths of pips. That alone wouldn’t be so bad, but it messes up a lot of things that I use and many other traders tools as well.
We are asking what the benefit of 5 digit pricing gives the trader or if it is just a benefit to the broker. Yes it does let us enter at more precise levels and even get in and out in between the whole pips, but really getting an extra .20 cents on a trade is no trade for the pain it is. Now I have to calculate all my custom indicators differently, I have to adjust my Expert Advisors as well (automated trading systems). When I place my stop losses and take profits I have to add a zero to the desired level. So when I want a 50 pip stop loss I need to put it in for 500 pips. That could get me in trouble if I mess that up.
So far this is only activated on their demo servers, but they are testing it there and getting the bugs out and preparing their clients for the transition to their live servers. I personally don’t see the value of it, the market is so liquid that there is rarely a problem with getting in or out at the price you specify. If anything this will make it more difficult to get into market trades, because when the market is fluctuating at the more precise levels, we should expect more re-quoting etc.
Well that is my opinion, and i hope they reconsider. As a forex coach and mentor I now have to help my students figure this out and know what to expect. One option is to complain to the broker, another is to change to another broker, (which is a pain, but might be necessary) I have my eyes on one.
Anyway, please leave me your opinion if you have one, I will respond.
Thanks and good luck trading.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
Forex trading is where it Ticks every second with a change. As u said a change in broker is must if he’s not functioning well.
But change we takes places in every field more over in the business fields it is quite common changes can be seen in the forex trading changes can be seen for every second without unknown what we have ti do for this we have to take the decision at that moment for very step
Change, change….. with out change the human being can’t exist. it’s a real thing ,change is the gift of nature by studying this article once I entered in to my past and compare my self in past and present in that I observed a lot of change.
Oh my god!! This goes beyond my head….
One thing I can say is…. “change is the only permanent thing in this world”.