At Alpari (UK) we believe that the retail FX market is moving towards an increasingly low cost and more efficient service for all clients regardless of trading volume or initial deposit.
Earlier this year, Alpari (UK) introduced a new pricing format with 5 decimal places on all Demo Accounts. Many of you already experienced this new feature successfully. As announced, this new price feed will be applied to all Live Accounts as of January 2nd.
Why an extra decimal?
The introduction of an improved price feed with an extra decimal place on all FX quotes allows us to provide our retail clients with tighter spreads in the future (i.e. less than 1 pip on some currency pairs), better pricing, execution and liquidity.
The main advantages of the new price feed will be:
- Tighter spreads
- More accurate pricing and execution
- Better liquidity with less slippage
- A true Straight Through Processing (STP) service
Note: If you have open positions running on January 2nd they will be automatically adjusted to the new format.
Important points to remember
Please be aware that the new price feed implementation will affect the following features of Meta Trader 4:
1) Expert Advisors (EA’s)
Some if not all EA’s will be affected by the introduction of a 5th decimal point. To make sure that your EA is brought into line with this change you must adjust your take profit / stop loss settings as well as any other pip value related parameters by multiplying your current levels by 10. For example, if you are currently using a stop loss level of 40 pips and a take profit level of 80 pips on each trade, in order to bring your EA in-line with the new pricing format, you must change your take profit level to 800 and your stop loss level to 400 respectively.
Also, please be aware that some EA’s may need more fundamental changes to their code for them to be compatible with the new pricing format. To make sure your EA works as you expect we advise that you contact your EA provider to implement the necessary changes as well as testing the new version on a demo account.
2) Custom Indicators
In similar fashion to EA’s, some indicators could be affected by the new pricing format. To make sure your particular indicator works as you expect we advise that you contact your indicator provider to implement the necessary adjustments as well as testing the new version on a demo account.
3) Stop loss and Take profit orders
All take profit and stop loss orders that are expressed in points should be multiplied by 10. For example, if you have a short open trade at 1.34500 and you would like to place a stop loss order 40 pips lower at 1.34100, you should input 400 points as the stop loss amount.
4) Trailing stops
When selecting a trailing stop value please be aware that all the values listed have already been multiplied by 10 so if you would like to set a trailing stop of 40 pips, you should select 400 as the trailing stop value.
5) Profit and Loss column
All profit / loss values expressed as Points in the Profit column under the Trade tab already incorporate the 5th decimal place adjustment. To see your profit/loss in the previous format simply divide the values you see in this column by 10.
6) Maximum deviation
The maximum deviation feature allows clients to ensure trade execution within a specified number of points/pips. In order to accommodate the new pricing format you must multiply the desired value by 10. For example, if you would like to ensure being filled within 5 pips of the current quote, you must input 50 into the ‘Maximum deviation’ box.
7) MT4 Crosshair
When using the ‘Crosshair’ feature in Meta Trader 4, the pip value shown when left clicking on a chart already takes into consideration the 5th decimal place adjustment. For example, if the pip value indicates 1500, this translates into 150 pips.
If you would like assistance with the transition or if you have any questions regarding the 5 decimal price feed please contact our Customer Services team at support@alpari.co.uk or via phone on +44 (0)207 648 4560.
