Noob very quick q about standard lot tick and comission, wrong in demo?

[maxoptions]

Hello!

1 standard lot gives 1pip or tick=10$ right. And comission for 1 lot is 7$? Something I don't get in my demo I use 1 lot but each tick is 1$ however the lot costs 7$ in comission. Is this an error in demo, should be 0.7$ comission for 1lot if that lot ticks in 1$ increments?

Then for the standard lot 7$ comission and 10$ for each tick??

Please help

 

[Sekiyo]

What instrument are you trading ?

If the tick value is 10$.
Then 1 contract (Lot) should be 10$ per tick.

You might be trading micro lot ... 0.1 lot ?

Commissions are broker dependent so we can’t tell. But it’s linear therefore if commissions for 1 lot are 7$ then for 0.1 lot it should be 0.7$.

 

[Sekiyo]

Exemple.

You buy 1 contract of XYZ at 0 tick.
You pay the commissions 3.5$.
You sell 1 contract of XYZ at +4 ticks.
You pay the commissions 3.5$.
You get the 4 ticks valued at 10$ each.

-7+(4x10)
-> 33

 

[schizo]

Hello!

1 standard lot gives 1pip or tick=10$ right. And comission for 1 lot is 7$? Something I don't get in my demo I use 1 lot but each tick is 1$ however the lot costs 7$ in comission. Is this an error in demo, should be 0.7$ comission for 1lot if that lot ticks in 1$ increments?

Then for the standard lot 7$ comission and 10$ for each tick??

Please help

You sure are a noob.

Anyway, every instrument has a different tick size and a tick value. For instance, crude oil (CL) moves in 1-cent ($0.01) increment and each tick is worth $10. As far as commission goes, that depends on the broker you use and you're usually charged a flat commission per contract, per side.

 

[maxoptions]

What instrument are you trading ?

If the tick value is 10$.
Then 1 contract (Lot) should be 10$ per tick.

You might be trading micro lot ... 0.1 lot ?

Commissions are broker dependent so we can’t tell. But it’s linear therefore if commissions for 1 lot are 7$ then for 0.1 lot it should be 0.7$.

This is about forex I posted in forex I thought this would be clear anyways it's currency pairs the question is about.

Exemple.

You buy 1 contract of XYZ at 0 tick.
You pay the commissions 3.5$.
You sell 1 contract of XYZ at +4 ticks.
You pay the commissions 3.5$.
You get the 4 ticks valued at 10$ each.

-7+(4x10)
-> 33

I think the last number of the movement is what is confusing. In example 0.00010 the last 0 number represents 1$ worth of movement in each micropip (not pips) and the number 1 represent 10 dollars for every pip change in this number.

So for a move to 0.00020 it will have moved 10$ in value (in general).

It's quite confusing when information says that each pip is valued at 10$ because as a new forex trader you can easily confuse the last number for a pip, but it's actually only 1/10th of a pip.

Correct?