Deep explanation of instrument specifications : pip/tick size, step, value, etc.

Hello everyone!

SQX lacks detailed documentation for instrument specifications.

I’ve selected GBPJPY as an example.

Please see pic1: it is inside SQX,   and   pic2,3: inside my account.

As you see in pic3:

GBPJPY: bid/ask : (183.079 / 183.120 —> Spread: 41)

183.120 – 183.079 = 0.041   =    41Pippet = 4.1 Pip

Also In pic2, it is written that digits is 3, as obvious in bid/ask prices.

Now see pic1 (SQX info):

We have below items:

• Pip/tick size:
  • It means a pip is 0.01, it means when prices moves a pip, it adds 0.01 to price. If current price is 183.120 and we go a pip, price will be 183.130

• Pip/tick step:
  • It means minimum move in price in my broker. It is now 0.001, it means that we can have 183.120, then 183.121, then 183.122, etc.
  • If this value was 0.005, it meant that we can have 183.120, then 183.125, then 183.130, etc.

• Default spread in pips
  • So here 5 means 5 pips equals 50 Pippet.
  • It means that as in my account spread is 41, So if I want to place that exact value here, I should put 4.1, Correct?

• We have slippage: which calculates similar to spread.
  • 1 here means 1 pip = 10 pippet.

• We have order size multiplier:
  • It should be contract size, and means when we buy 1 contract, it is how much GBP (in case of GBPJPY) or how much BTC in case of BTCUSD.
  • So as in my broker, contract size is 100,000 –> meaning that if you go long 1(lot) GBPJPY, you bought 100,000 GBP. And so I should place 100,000 here.

• Point Value in $: ( the biggest problem! )
  • What is point? is it pip or pippet?
  • Why the name it not Pip value? or Pippet value?
  • What is the meaning of Point value in $? and why it is 900 by default?
  • It seems it means if we move 1 pip, how much we receive in $. If it is correct, in our case it is variable during time, is that correct? because GBPUSD value changes during the time.
  • And look at pic4, pip calculator, if we have it fixed as now, it should be 6.767

And at last, if I’m correct, this setting for my account will be as shown in pic5.

Please check if I’m right!

No one to reply?

Same doubts here! Any hints on that?

Hello,

the understanding from Alex is almost correct

SQ order size multiplier – this is used when you need to multiple the lot size determined by SQX. For example in Multicharts trading platform the minimum lot size is 1 so that if SQX uses lot size = 0.1 it will be 10,000 in Multicharts (order size multiplier = 100,000)

SQ point value – it is monetary value for a whole number price move basically. That is from 1.2035 to 2.2035 per 1 lot