Newbie Forex Question.

Discussion in 'Forex' started by scott55tt, Jun 4, 2010.

  1. 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.
  2. elomich


    That spread means 2 pips.

    1 pip =10.00 USD.

    I'd recommend finding a broker other than FXCM.
  3. 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.
  4. Thank you both guys.

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

    Do you guys recommend any broker ?

  5. bstay


  6. bstay


  7. elomich


    GFT or Oanda.
  8. 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.
  9. 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.
    #10     Jun 4, 2010