Scaled prices

[Guest Edward]

Hi,

 

I'm writing an EA and am trying to calculate the required margin of a particular trade. The calculation I'm trying to do is marginRate * price * lotsize. I understand that in MT4 the prices are unscaled and in IG they are scaled. How do I calculate the scaled prices using MT4?

 

Many thanks,

 

Ed

[Caseynotes]

Ok @EdFuk I see what you mean, the web platform is scaled in points while mt4 has the actual price. 

So for eurgbp the web platform is 8940.1

and mt4 is                                        0.89401 and so to convert price into points you multiply by 10,000.

as it's spread betting the size is £/point  (say £1)   so the calc is (size (1) x price in points x margin rate (3.33%))

so the margin amount is   £297.70

Contract size isn't used in spread betting but mt4 calls size as lots for both SB and CDF accounts but it really means £/point for SB.

 

 

 

 

 

 

 

[Caseynotes]

Hi Edward,  not sure what you mean by 'unscaled prices' on mt4, the margin calculation is the same on both platforms but differs for the different markets. See the link to the margin calc pages below.

https://www.ig.com/uk/spread-betting-cfds-margin

 

 

[trade247]

are you talking about tier 1,2,3,4?

[EdFuk]

I have opened an IG spread betting MT4 account and in the information that comes with the account it mentions that the forex prices are scaled on IG and raw or I scaled in MT4. So when trading EURGBP at a price of 0.89 say (the value indicated in MT4) I think I would have to multiply that figure by the contract size which is indicated as 10,000 in the specification. Therefore the calculation would be:

 

lots x price x contract size x margin rate

 

Any ideas?

 

cheers,

 

Ed

[EdFuk]

I have opened an IG spread betting MT4 account and in the information that comes with the account it mentions that the forex prices are scaled on IG and raw or I scaled in MT4. So when trading EURGBP at a price of 0.89 say (the value indicated in MT4) I think I would have to multiply that figure by the contract size which is indicated as 10,000 in the specification. Therefore the calculation would be:

 

lots x price x contract size x margin rate

The crux of it is that the actual price is as displayed in MT4, say 0.89401 but in IG they scale it to 8940.1  I’d like to know how to find out how to scale a particular instrument using the information available e.g using a property in the marketinfo function  

Any ideas?

 

cheers,

 

Ed

[EdFuk]

Got it. I think the key is I need to convert the price to points. Thanks very much for the info.

 

Ed