Is the spread in MT5 displayed in points or pips?

Answered on : 2024-07-11

Sources

POINTS or PIPS in spread indicator

forexfactory.com

mql5 - Is the result in PIP or POINT?

stackoverflow.com

Problem with spread and point

mql5.com

view 10 more

Answer

Improve the Answer

In MetaTrader 5 (MT5), the spread is displayed in points, not pips. This distinction is crucial to understand for accurate trading and analysis.

A pip, short for "percentage in point," represents the smallest price movement in a forex currency pair. Typically, in most currency pairs, one pip equals 0.0001 of the quoted price. However, MT5 displays spreads in points, where one pip is equivalent to 10 points. For example, if the spread is shown as 20 points in MT5, it equates to 2 pips.

To clarify:

- **Pip:** The smallest price movement in a currency pair. For most pairs, 1 pip = 0.0001.

- **Point:** A fraction of a pip. In most cases, 1 pip = 10 points.

Understanding this conversion is essential for accurately interpreting the spreads in MT5 and making informed trading decisions.

For further reading:

1. POINTS or PIPS in spread indicator

2. Problem with spread and point

3. Why is spread shown differently on MT4/MT5 and Exness

Understanding these details will help you navigate the trading environment more effectively and avoid any potential confusion regarding spreads.