Clarification Of Spread In FXT Editor (How to Calc Spread)

[imported_tickstoryParticipant March 21, 2015 at 10:18 pm Post count: 1479]

#20623

Hi Trader 2384,

The spread value of in MT4 is expressed in Points. This is because “pips” as we know it is dependent also on the number of “digits” the broker has (i.e. whether it supports fractional digits or not).
Here is some code that will help demonstrate the point and let you confirm that the actual test values are as you expect:

// SpreadDivider is used to calculate whether the spread should be divided by 10 to get the "pip" spread

int spreadDivider = (Digits % 2 == 1) ? 10:1;

Print("Spread (Ask-Bid): " + DoubleToStr(Ask-Bid));

Print("Spread (expressed in Points): " + MarketInfo(Symbol(),MODE_SPREAD));

Print("Spread (Pips): " + DoubleToStr(MarketInfo(Symbol(),MODE_SPREAD) / spreadDivider));

On a 5-digit instrument, you would be expecting your Ask-Bid to be 0.00002 if your spread was set to 0.2 pips.

There is some discussion on MT4 forum threads that discuss this concept more.

Hope this helps.

[Trader2384Participant March 22, 2015 at 10:12 am Post count: 75]

#20624

Interesting – that code helps a lot. Thank you!

So just to confirm – for a 5-digit broker on a 5-digit currency pair like EURUSD, entering the number “2” in strategy tester spread box means 2 points or 0.2 pips?!

Is there a way to tell in mt4 the number of “digits” the broker has?

[imported_tickstoryParticipant March 23, 2015 at 12:04 am Post count: 1479]

#20625

Correct – “2” on a 5-digit broker means 0.2 pips (as the Tickstory UI shows).
In Metatrader MQL language, you can use “Digits” to determine how many digits a symbol has.

Regards.

[Trader2384Participant March 23, 2015 at 9:32 am Post count: 75]

#20626

great, thanks!

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