Instrument Specification & Spread

I have a question on settings for spread, slippage and min distance.

When entering these numbers what should  these numbers be based on? For example for the instrument specification as follows:

Pip/Tick Size = 0.01

Pip/Tick Step= 0.001

If I enter 10 in the spread setting am I correct in saying that SQX will equate this to 0.01 x 10 = $0.1 actual price difference between bid and ask?

Are slippage and min distance calculated with the same multipliers?

step decimal points – should be set as a decimal points by your broker, for example EURUSD has 5 decimals, so step will be 0.00001, by this setting you are saying what is the lowest posibble move, si this is tick for forex

and by size value, you are setting where lies 1 pip move, so for forex 10 ticks = 1 pip, because of that size is by 1 decimal point smaller

if you set this way spread and slippage will be set in pips

for currencies its very simple, we have only JPY pairs, which has 3 decimals, other markets has 5 and everything is set correctly by dukascopy data itself

for indices, etc. you need to know what is your broker using…so the setting is little tricky

Thanks hankeys.

So the spread you enter is the number of units of spread in terms of the Pip/Tick size specification window?

yes…you can see the real spread in MT platform itself, but the value is in ticks – the lowest possible moves by decimal points

so if i see spread as 11, i need to set it in pips – so 1.1, but for backtests i will set worse value, for example for EURUSD 2, GBPUSD 3, GBPJPY – 6, because of widening the spreads because of news, or evening

we dont need accurate backtest, we need to be profitable for the future

Cheers.

Hi dear friends,

I really need your help. I mixed up. what is gold spread of 60 in default? Is it based on ticks? my broker spread for gold which is 40-50 points or 4-5 pips. Is it ok or not to make the strategy? Thanks. pleas reply me as I really need your guidance. God bless you

Hi,

it is expressed as number of pips so with your broker you are OK to set the spread to 5