Charts, charts and more charts

[Phylo]

BTCGBP : £45,000 Limit Buy not happening

 

[Phylo]

EURUSD : MT5

EURUSD : Sierra Chart

 

[Phylo]

Target 1.16935 - EURUSD : Sierra Chart - PD: Price Diffidence in Points - EV: Price

Target Filled - EURUSD : Sierra Chart - PD: Price Diffidence in Points - EV: Price

Go figure !

400 points x 0.01 lots = $4*
400 points x 0.10 lots = $40
400 points x 1.00 lots = $400
400 points x 10.00 lots = $4,000

* if you are new to trading do not believe Google search AI incorrect answer of $40 - do a Google search deep dive - or - do a ChatGPT or other decent and reliable AI agent for a correct answer of $4 and note, points are not pips.

Tales from a London barrow boy
💡 $100 / $4 = 25 >> $4 x 25 = 100% $100 >> $100 + $100 = $200
💡 $1,000 / $40 = 25 >> $40 x 25 = 100% $1,000 >> $1,000 + $1,000 = $2,000
💡 $10,000 / $400 = 25 >> $400 x 25 = 100% $10,000 >> $10,000 + $10,000 = $20,000
💡 $100,000 / $4,000 = 25 >> $4,000 x 25 = 100% $100,000 >> $100,000 + $100,000 = $200,000

Q1: Weeks 01 - 13 (13 weeks total)
Q2: Weeks 14 - 26 (26 weeks total)
Q3: Weeks 27 - 39 (39 weeks total)
Q4: Weeks 40 - 52 (52 weeks total)

 

[Phylo]

NOTES
Words:

• Base currency
• Quote currency
• Deposit currency
• Margin
• Base Currency Units (BCU)
• Leverage (Lev)
• Parity (Par)
• Exchange Rate (Exch)

With regards EURUSD, EUR is the base currency and USD is the quote currency.
Easy Remember: Alphabetically B before Q, Base before Quote.

Margin
Margin is always delineated / defined / quoted in Base currency.
With respect to EURUSD margin will be quoted in EUR - but - measured in Deposit Currency.
With respect to GBPUSD margin will be quoted in GBP - but - measured in Deposit Currency.

Considerations
Normally

1. 0.01 lots - assigned as 1,000 BCU.
2. 0.10 lots - assigned as 10,00 BCU
3. 1.00 lots - assigned as 100,000 BCU
4. 10.00 lots - assigned as 1,000,000 BCU

Brokers are at liberty to define a host of trading specifications and parameters as they see fit.
Example: a broker is at liberty to assign 0.10 as 1,000 BCU and not the normative, 10,000 BCU - in which case calculations must be adjusted accordingly - but such is the exception, rather than the norm.

Margin Calculations
Example 1

1. EURUSD - 0.01 Lots - 1:30 Leverage - Deposit currency: EUR.
2. EUR to EUR - exchange is 1:1 - or - Parity
3. Margin = BCU / Lev x Exch(Par) >> 1,000 / 30 x 1 >> 33.33 x 1 = 33.33 EUR

Example 2

1. EURUSD - 0.01 lots - leverage 1:30 - deposit currency USD.
2. EURUSD = 1.17681
3. Margin = BCU / Lev x Exch >> 1,000 / 30 x 1.17681 >> 33.33333 x 1.17681 >> 39.226996 = 39.23 USD.

Note: 33.333333….. Is a recurring decimal and to avoid rounding errors if multiplying by > 1 then calculate to 5 decimal points for optimum decimal-rounding accuracy.

*** NOTE ***
In example 2, Margin delineated / defined / quoted in EUR (base currency) was not the same as Deposit currency and therefore is required to be converted into deposit currency: USD.

Brokers are NOTORIOUS for failing to convert Margin currency (as well as TICK VALUE) to Deposit if Margin currency is NOT at parity (1:1) with Deposit currency.
Review -

• Example 1: EUR-EUR (1:1 parity) - no applicable exchange rate
• Example 2: EUR-USD - applicable exchange rate applies

In the case of Example 2 - incompetent brokers will argue that ticks are measured in Margin currency and therefore correct at a specification of 1 and not floating *
* i.e subject to exchange rate - either static as a set value as applicable to margin at the time of trade open or PnL at trade close or dynamic - a floating exchange rate - while a position is open: hence a change in PnL in the absence of Price change.

• This is so ignorant it is a f-insult.

1. Such - an incompetent brokers claim - is only correct if Deposit currency is the same currency as Margin (base) currency.
2. Such - an incompetent brokers claim - is not correct if Deposit currency is NOT the same as Margin (base) currency

Further elaboration below

 

[Phylo]

Quoting Tomas-ftmo
Quoting Phylo
Please review the below images - this was addressed at length before (below link) and FTMO is familiar with the problem. {image} {image}
The current exchange rate GER30.lmax and DAX.lmax (EUR) against deposit currency USD -> USD:EUR - 1:1.11954 or 1.11954 tv not USD:USD - 1:1 or 1.00000 tv.
Therefore the calculation in the image should be 1.00 lots x 10 points x 1.11954 tv = USD 11.1954 = USD 11.20 not USD 10.00 Note: the indicator tool used in the image automatically determined the deposit currency (in this instance USD) and the broker...

Quote
Hi Phylo,
Please be aware that the tick value is measured in the margin currency.
You can see in the specification of the DAX.lmax_m that the Margin currency is EUR.
The tick value is correctly specified as 1 since 1 tick movement results in 1 EUR P/L.
Should you have any more concerns, feel free to contact us at [email protected] where we can provide an answer for you in a more timely manner.

PART: ONE of TWO

This answer is typical and typical misconception of

1. the novice trader
2. trader with limited numerical ability and experience.
3. trader with no understanding of the MQL4 language and how the MQL4 language defines words like tick value, margin currency etc. ....or regurgitation of advisory by coders or technical services that are none-the-wiser.
4. the sweep it under the carpet contingent - hoodwinkers and others incapable or lacking incentive of mastery of their craft.

1. Please be aware that the tick value is measured in the margin currency.
A1. No it it is not. a) It is delineated and defined in margin currency and b) it is 'measured' in deposit currency. (and this - sir - may seem semantics - but is the premise of your (and any advisor's) misunderstanding - you appear not to understand that tick value is 'measured' in deposit currency - not margin currency)

2. You can see in the specification of the DAX.lmax_m that the Margin currency is EUR.
B2. I am absolutely aware that DAX.lamax margin is delineated in EUR.

3. The tick value is correctly specified as 1 since 1 tick movement results in 1 EUR P/L.
A3. No the tick value is not correct. For while it is delineated as 1 EUR it has not been translated into the deposit currency which, in this case, is ....... USD ......as clearly stated.
If the deposit currency is in GBP the EUR delineated tick value requires translation into GBP. If the deposit currency, in this case of DAX30, is EUR the tick value is already translated to deposit currency and is FIXED at 1 (parity exchange rate).

How is the translation achieved ? By applying the the EUR-USD exchange rate.

But do not take my word for it - here is the direct quote from MQL4 Language documentation.

MarketInfo() Identifiers - MODE_TICKVALUE - Minimal tick value in the deposit currency. - https://book.mql4.com/appendix/marketinfo

Lets repeat the MQL4 documentation definition for ultimate clarity - Minimal-tick-value-in-the-deposit-currency. And as stated - the deposit currency - USD.

Here is typical code to return tick value for a symbol -> double TV=((MarketInfo(Symbol(),MODE_TICKVALUE)));

This code returns the tick value set by the broker and is dependent on the broker affecting the translation (exchange rate) if the deposit currency
is a different currency to the delineated instrument currency.

If the broker does not have the tick value set correct the code fails - not because the code is at fault - but because the the broker has failed to apply the necessary translation to deposit currency.

Why is the code dependent on the broker for tick value ? Because the broker is at liberty to define - besides a host of other parameters and metrics - a tick value with offsets ratio multiples greater than 1 or less than 1.

As the tick value is individually broker defined and not universally the same across like-for-like instruments brokers to broker the code is dependent on the broker for correct representation and the key component of translation or exchange application.

So this is how it works.

1. DAX30: Tick value DELINEATED in EUR and DEFINED by the broker as 1EUR. Deposit currency is EUR. The tick value is = 1 EUR. (yes, you stated that.........except, the deposit currency was USD)
2. DAX30: Tick value delineated in EUR and defined by the broker as 1EUR. Deposit currency is USD. The tick value is 1 x 1.13xxx(EUR-USD exchange rate) = 1.13xxx USD.
3. DAX30: Tick value delineated in EUR and defined by the broker as 1EUR x 0.01 = 0.01EUR. Deposit currency is EUR. The tick vale is = 0.01EUR.
4. DAX30: Tick value delineated in EUR and defined by the broker as 1EUR x 0.01 = 0.01EUR. Deposit currency is USD. The tick vale is = 0.01 x 1.13xxx = 0.0113xxx USD.
5. DAX30: Tick value delineated in EUR and defined by the broker as 1EUR x 25 = 25 EUR. Deposit currency is EUR. The tick vale is = 25 EUR.
6. DAX30: Tick value delineated in EUR and defined by the broker as 1EUR x 25 = 25 EUR. Deposit currency is USD. The tick vale is = 25 x 1.13xx = 28.35xxx USD. (these 25 EUR tick value definements are when brokers emulate the FDAX Futures tick value of 25 EUR/Futures point (12.50 EUR/0.5 point). - see - https://www.ampfutures.com/trading-i...pecifications/

Notes on margin calculation in relation to deposit currency - concise, precise, time tested and accurate and correct as correlated to real world calculation results - https://www.forexfactory.com/showthr...25#post8896625

Broker Comparisons:

To illustrate the fallacies of the quoted and address answer - A comparison of a number of brokers tick value settings and ALL of DAX30-GER30 EUR delineated currency and ALL* with USD deposit currency - *with exception of one EUR deposit currency.

All chart have two indicators - one with green text and one with blue. Our primary focus is on the blue text which should be self explanatory.

The green text indicator has no inputs and only returns account information and performs no outward account calculation.

The blue text indicator has four components.

1. A lots Input
2. A points Inputs *
3. A tick value indication - this is not an input but is read from the broker tick value setting and translation or absence of translation as described above and is always in Deposit Currency.
4. A final calculation which is always in Deposit Currency.

• * The MQL4 Programming Language codes in points and knows nothing of the beloved and defunct pips of the retail trader - Point definition from MQL4 Docs: MODE_POINT - Point size in the quote currency. For the current symbol, it is stored in the predefined variable Point. - https://book.mql4.com/appendix/marketinfo
• Simplified: MQL4/5 point is the least significant digit quoted or the least significant digit increment or decrement possible.
• Click middle mouse button to activate cross-hairs >> left click >> drag across chart: MT4 returns the second figure of distant in points not pips - MT5 categorically labels the distance with the word 'points'. MT4/MT5 references numerous metrics in points - never in pips. It is coders who convert MQL4/5 points to pips.

Note: EUR-USD Exchange Rate Asian Session - All screen grabs are during Asian Session which will account for wide spreads

In the below immediate two broker tick value comparisons the delineated tick value defined by both brokers is 1 EUR - the top broker correctly translates** the tick value to the deposit currency but the bottom broker leaves the 1 EUR tick value untranslated. ** Applies the applicable exchange rate.

BROKER WITH CORRECT TICK VALUE TRANSLATION: DAX - EUR: Deposit Currency USD.

Note: the broker has defined the tick value as 1 EUR and the translation to deposit currency USD is 1 x 1.13029 = 1.13029 USD tv
Note: 126681-12579 = 102 points

BROKER WITH NO TICK VALUE TRANSLATION: DAX - EUR: Deposit Currency USD.
Note:

1. The broker has defined the tick value as 1 EUR but no translation so the indicator calculation fails to mirror the account value 11.31.
2. Had the broker translated the 1 EU tick value to USD deposit currency - 1 x 1.13097 = 1.13097 USD tv.
3. The final calculation by the indicator would have been 0.1 lots x 100 points x 1.13097 tv = 11.309 = 11.31 USD which matches the account value

The above comparison and discrepancy should be as clear as day is to night.

BROKER WITH CORRECT TICK VALUE TRANSLATION: DAX - EUR: Deposit Currency USD.

Note: the broker has defined the tick value as 1 EUR x 0.01 = 0.01 EUR and the translation to deposit currency USD is 0.01 x 1.13125 = 0.01131 USD tv

BROKER WITH CORRECT TICK VALUE TRANSLATION: DAX - EUR: Deposit Currency EUR.

Note: the broker has defined the tick value as 1 EUR x 0.01 = 0.01 EUR and the translation to deposit currency EUR is 0.01 x 1 = 0.01000 EUR tv

 

[Phylo]

PART: TWO of TWO

BROKER WITH CORRECT TICK VALUE TRANSLATION: DAX - EUR: Deposit Currency USD.

Note: the broker has defined the tick value as 1 EUR x 25 x 0.1 = 2.5 EUR and the translation to deposit currency USD is 2.5 x 1.12991 = 2.82478 USD tv

BROKER WITH NO TICK VALUE TRANSLATION: DAX - EUR: Deposit Currency USD.

Note:

1. The broker has defined the tick value as 1 EUR x 25 x 0.1 = 2.5 EUR but no translation so the indicator calculation fails to mirror the account value 2.83.
2. Had the broker translated the 2.5 EU tick value to USD deposit currency - 2.5 x 1.13107 = 2.82277 USD tv.
3. The final calculation by the indicator would have been 0.01 lots x 1000 points x 2.82277 tv = 2.827 = 2.83 USD which matches the account value.

ODD-BALL

BROKER WITH CORRECT TICK VALUE TRANSLATION: DAX - EUR: Deposit Currency USD.

Note: the broker has defined the tick value as 1 EUR x 2 x 0.1 = 0.2 EUR and the translation to deposit currency USD is 0.2 x 1.13089 = 0.22618 USD tv

AND LASTLY

BROKER WITH NO TICK VALUE TRANSLATION: DAX - EUR: Deposit Currency USD.

Note:

1. The broker has defined the tick value as 1 EUR x 0.01 = 0.01000 EUR but no translation so the indicator calculation fails to mirror the account value 11.28..
2. Had the broker translated the 0.01 EU tick value to USD deposit currency - 0.01 x 1.12854 = 0.01128 USD tv.
3. The final calculation by the indicator would have been 1 lots x 100 points x 0.01128 tv = 11.28 USD which matches the account value.

 

[Phylo]

Base Currency Margin Table with reference to 1.00 Lot assigned 100,000 Base Currency Units

Base Currency Margin = Base Currency Units / Leverage x Lots

1. 500:1 - 1.00 Lot: Base Currency Margin: 100,000 / 500 x 1.00 >> 200 x 1 = 200.00 ( EUR or USD or GBP or AUD or JPY, etc )
2. then ......
3. 500:1 - 0.10 Lot: Base Currency Margin: 100,000 / 500 x 0.10 >> 200 x 0.10 = 20.00
4. 500:1 - 0.01 Lot: Base Currency Margin: 100,000 / 500 x 0.01 >> 200 x 0.01 = 2.00
5. 30:1 - 0.10 Lot: Base Currency Margin: 100,000 / 30 x 0.10 >> 3,333.33333 x 0.10 = 333.33

Leverage percentage: 1 / Leverage x 100 = x.xx %

1. 1 / 500 x 100 = 0.002 x 100 = 0.20 %
2. 1 / 200 x 100 = 0.005 x 100 = 0.50 %
3. 1 / 30 x 100 = 0.033333 x 100 = 3.33 %

 

[Phylo]

Cell Values.
Cell B25: 200.00, Cell B26: = 234.57, Cell: L26: 1.17285

Cell Formula Hints/
Formula Cell B25: =100000 / 500
Formula Cell B26: =B25*$L$26
Formula cell L26: =GOOGLEFINANCE("CURRENCY:EURUSD")

 

[Phylo]

Interactive Spread Sheet Calculator - beyond the scope of this post

In the above example - at 1.52% risk, if a trader were to take 66 consecutive losing trades (all losers (66) - not a single win) said trader will have expended 100% - all - of Free Margin -

12.25 x 66 = 808.50​

10.00 x 66 = 660.00​

20.00 x 66 = 1,320.00​

etc.,
and have 100% Margin remaining -

273.67 from an initial balance of 1,082.17​

390.95 from an initial balance of 1,050.95​

781.90 from an initial balance of 2,101.90​

etc.

For simplicity of approximation modelling, factors of slippage and latency, etc., are ignored.
The column Com (Commission) for simplicity of presentation has bee left blank - a typical value on ENC or Razor would 6.00 / Lot round trip.