Antara Broker 4 Digit dan Broker 5 Digit

The difference between 4-digit and 5-digit brokers

Forex Brokers Introduction - This article examines the difference between a 4-digit broker and a 5-digit broker. This information is very important for those of you who are new to this Fox business and are confused by the type of broker of your choice.

In fact, the difference between the two is the writing of numbers. The 4-digit broker still uses the old system and does not display a single coin . 5-digit brokers, however, know the percentage .
(A coin is the smallest amount of a particular coin.)

The following is an example of a text.

• Proxy Example No. 4 ፡ Short-
  - Euro / USD: 1.2428
  - USD: 118.08
• Example of a 5-digit broker
  - Euro / dollar fall 1.2428 2
  - USD: 118.08 5

Note: The red numbers in the example above are coins in a 5-digit broker .

As can be seen from the example above, the main difference between a 4-digit forex broker and a 5-digit forex broker is price accuracy. Brokers using the 4 4 ​​digit system are more accurate at offering prices than the Forks broker.

History of the development of digitalization systems in Forex brokers

In the past, when the Forks business was new and complex, there was a three-digit system for copying the original numbers. Once the transaction volume is more fluid, which is $ 1, this business will be more fluid. With a huge number of transactions ($ 4 trillion per day) going on, a 5-digit system with the highest price accuracy has been created.

The change in the number system is therefore due to an increase in the volume of liquid that occurs globally.

Advanced figure understanding in Forex brokers

In fact, it is easier to understand the difference between a 4-digit broker and a 5-digit broker. This difference in the app has a huge impact on the score . 4-digit brokers 100 points means the same pipe number.

Broker 5 digits, between 100 points and 1000 points. Here we mean 1000 100 0 .
By adding one digit to a 5-digit broker relationship, error traders determine the 4-digit split point. We can specify 5-digit brokers with one more dash. Tag 107 (1.7 points).


Tag
5-digit broker, TP 100 pips is not exactly 100 pips, but 10.0 pips. So if you are using a 5-digit broker at 0.1 lot and 100 TP in Euro / USD, that is $ 10 TP (not $ 100).

Here are the benefits of a 5-digit broker system:

1. Price information is more accurate and accurate.
2. As the numbers increase, the PAP becomes clearer.
3. The transaction process is more chained.
4. Document calculation is more flexible (Example 10.3 points)
5. The price movement is more active because it shows the image of the penny
6. Commercial robots become more aggressive in service

Closing

From the above explanation, it can be said that the digital system only affects Forex brokers.

No, that's enough for our text. If you have any suggestions or questions, please leave a comment below.

Greetings!

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Author Deft Steve Cando (TopikForex Manager) - WA 08 08 0822-3777-7474

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