Newbie Forex Question.

S

scott55tt

Pardon me but I just started following Forex & have couple of basic questions. I would appreciate any feedback.

(1) Is euro/usd traded in 4 digits or 5 digits ?

I mean current price I see using FXCM feed & Ensign Software is :

Bid : 1.21793

Ask :1.21818

So spread is 1.21818 - 1.21793 = 25 pips ? OR 2 pips ?

How do you place your order ? Using 4 didgits or 5 didgits ?

And 1 pip = US $10.00 ?

(2) I use volume charts & it seems FXCM does not have much volume. Barely 50,000 contracts a day.

So the volume is dependant on broker ? If so which broker has the highest volume per day ?

Thanks much.
Scott
 
Quote from scott55tt:

Pardon me but I just started following Forex & have couple of basic questions. I would appreciate any feedback.

(1) Is euro/usd traded in 4 digits or 5 digits ?

I mean current price I see using FXCM feed & Ensign Software is :

Bid : 1.21793

Ask :1.21818

So spread is 1.21818 - 1.21793 = 25 pips ? OR 2 pips ?

How do you place your order ? Using 4 didgits or 5 didgits ?

And 1 pip = US $10.00 ?

(2) I use volume charts & it seems FXCM does not have much volume. Barely 50,000 contracts a day.

So the volume is dependant on broker ? If so which broker has the highest volume per day ?

Thanks much.
Scott
More...

That spread means 2 pips.

1 pip =10.00 USD.


I'd recommend finding a broker other than FXCM.
 
4th decimal is the full pip.

5th is 10ths of a pip and not always quoted. On Ensign you should be able to set it to only show the 4th place.
 
Quote from Xspurt:

4th decimal is the full pip.

5th is 10ths of a pip and not always quoted. On Ensign you should be able to set it to only show the 4th place.
More...

Thank you both guys.

I use volume charts, so I find more volume helps make better charts.

Do you guys recommend any broker ?

Thanks
 
Quote from scott55tt:

Thank you both guys.

I use volume charts, so I find more volume helps make better charts.

Do you guys recommend any broker ?

Thanks
More...

GFT or Oanda.
 
Quote from elomich:
GFT or Oanda.
More...
i use GFT Forex. but found their Dealbook360 platform takes up too much resources, like 729K in memory usage on WindowsXP. also, there is a no-activity fee if i don't trade for 90 days. otherwise, i liked the 2-3pips spread for majors.
 
Quote from bstay:

i use GFT Forex. but found their Dealbook360 platform takes up too much resources, like 729K in memory usage on WindowsXP. also, there is a no-activity fee if i don't trade for 90 days. otherwise, i liked the 2-3pips spread for majors.
More...

I don't mean to critisize you but I don't understand your point of less than 1 mb memory when memory prices are so cheap. What am I missing ?

Just trying to learn a lot from all of you guys & appreciate all the help.

Are you saying it also takes up lots of cpu power too ?

Thanks for explanation in advance.
 
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